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IDX Composite opens week in red amid continued capital outflows
The IDX Composite declined for the fourth consecutive trading day on Monday, falling by 0.38 percent to 7,134.28 amid significant capital outflows.
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Gains and losses: An employee walks past a giant monitor showing the fluctuations of the Composite index at the Indonesia Stock Exchange (IDX) in Jakarta on Aug. 5. (Antara/Dhemas Reviyanto)
T
he Indonesia Stock Exchange (IDX) Composite index declined for the fourth consecutive trading day on Monday, losing 0.38 percent or 26.98 points to conclude at 7,134.28.
Throughout the day, the index recorded an accumulative transaction value of Rp 10.1 trillion (US$637.84 million). Trading data showed 397 stocks declining, 198 strengthening and the remaining 193 flat.
Over the past week, the IDX Composite has declined by 1.82 percent. Year-to-date, the index has lost 1.90 percent.
Nine of 11 sectoral indices pulled the composite index into the red on Monday. Technology was the biggest losing sector, sliding 1.46 percent by the closing bell. The two other sectors recording the biggest percentage declines were property and real estate, which fell by 1.38 percent, and energy, which plunged by 1.05 percent.
Industrial and non-primary consumer goods were the only gaining sectors for the day, adding 1.05 percent and 0.57 percent, respectively.
Similar to the IDX Composite, the LQ45 posted a 0.45 percent decline and closed at 867.74. The biggest decliner in the 45-stock index was PT Adaro Energy Indonesia (ADRO), which fell 5.61 percent. Meanwhile, PT GoTo Gojek Tokopedia (GOTO) was the index's top performer, adding 6.25 percent.
Analysts noted significant capital outflows in the IDX Composite index over the past month. Several factors contributed to the index's decline, including Donald Trump’s victory in the United States presidential election and the Federal Reserve’s cautious monetary easing.
Trump is known for his protectionist trade policy. His presidency is expected to increase trade tariffs significantly, particularly affecting China, Indonesia’s key trading partner.
Fed chairman Jerome Powell also recently stated that the US central bank would not cut its benchmark rate aggressively. With this cautious monetary policy, the 10-year US Treasury yield is expected to remain high, affecting the financial market.
