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IDX Composite rebounds 0.86% after development in China
The IDX Composite index rebounded 0.86 percent on Tuesday, fueled by a boost in tech stocks and China's stimulus package.
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An employee walks past a giant monitor showing the fluctuations of the Composite Index on Aug. 5, 2024, at the Indonesia Stock Exchange (IDX) in Jakarta. The IDX Composite index rebounded 0.86 percent on Tuesday, Nov. 19, 2024, fueled by a boost in tech stocks and China's stimulus package, to close 0.86 percent higher at 7,195.71. (Antara/Dhemas Reviyanto)
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fter four consecutive days of decline, the Indonesia Stock Exchange (IDX) Composite rebounded on Tuesday. The index rose by 0.86 percent, gaining 61.44 points to close at 7,195.71.
Of the 11 sectoral indices, 10 posted gains, with the health sector the only exception, falling by 0.24 percent.
The technology sector led the rally, surging 5.24 percent, followed by the infrastructure sector, which climbed 2.56 percent higher. Other notable gains included the non-primary consumer goods sector, property & real estate and raw materials.
Among the LQ45 stocks, PT Indosat (ISAT) saw the largest increase at 9.38 percent, followed by PT Mitra Adiperkasa (MAPI), which rose 9.31 percent and PT GoTo Gojek Tokopedia (GOTO), which gained 8.82 percent.
On the downside, PT Bank Syariah Indonesia (BRIS) dropped by 2.46 percent, followed by PT AKR Corporindo (AKRA), which declined by 2.24 percent and PT Aspirasi Hidup Indonesia (ACES), which fell by 1.21 percent.
The total transaction volume on the IDX reached 23.7 billion shares, with a transaction value of Rp10.92 trillion (US$689 million). A total of 382 stocks advanced, 212 declined and 197 remained unchanged.
Despite Tuesday's rebound, the index has dropped 1.72 percent over the past week and is down 7.62 percent over the past month. Since the start of the year, the index has lost 1.06 percent.
The positive sentiment in Tuesday's market was mainly driven by external sentiment. According to Pilarmas Investindo Sekuritas, the ongoing investment summit in Hong Kong, where Chinese officials discussed economic policies, provided a boost.
"Technology and financials drove the gains, as traders continued to digest China's regulatory guidelines urging listed companies to boost share prices through market value management, such as share buybacks and cash dividends," read Pilarmas’ research note, as quoted by investor.id.
Additionally, China's announcement of a five-year stimulus package worth 10 trillion yuan ($1.38 trillion) helped lift investor confidence, particularly in the technology and financial sectors.
"This jumbo stimulus is expected to help with regional government debt problems, leading to economic improvement," Panin Sekuritas said on Tuesday afternoon, as quoted by idxchannel.com.
The market also absorbed China's new regulatory guidelines, including share buybacks and cash dividends to support share prices.
Panin Sekuritas also noted that the stimulus announcement and a rebound in large-cap stocks such as TLKM, BREN and GOTO fueled the IDX Composite's recovery.
Investors are considering the Bank Indonesia rate decision, scheduled for Wednesday, which could influence market sentiment in the coming days.
