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IDX Composite gains 0.95% with upbeat investor sentiment
The IDX Composite rose by 0.95 percent to 7,382.785 on Friday, with strong gains in technology and property stocks.
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Making gains: 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. The IDX Composite rose by 0.95 percent to 7,382.785 on Friday. (Antara/Dhemas Reviyanto)
The Indonesia Stock Exchange (IDX) Composite index closed the week higher, gaining 0.95 percent to settle at 7,382.785 on Friday.
The market saw widespread gains, with the technology sector leading the charge, up 1.82 percent by the close. The property and real estate sectors followed suit, rising 1.75 percent, while the infrastructure and energy sectors also had notable increases, up 1.12 percent and 0.95 percent, respectively.
On the downside, the health sector saw the largest decline, falling 0.61 percent. Meanwhile, the transportation and logistics sector dropped by 0.44 percent.
The total trading volume reached 16.09 billion shares, with a transaction value of Rp 8.57 trillion (US$557 million). Of the 789 stocks traded, 316 rose, 259 declined and 214 remained unchanged.
The top gainers in the LQ45 index were PT Bank Jago, which surged by 5.88 percent, PT Perusahaan Gas Negara (PGAS), which gained 3.5 percent and PT Barito Pacific, up 2.69 percent.
On the other hand, the biggest decliners in the LQ45 were PT Semen Indonesia, which fell by 2.67 percent, PT Kalbe Farma, which dropped by 2.66 percent and PT Indah Kiat Pulp & Paper, which decreased by 2.4 percent.
Investor sentiment remained positive, supported by stable inflation expectations and continued consumer spending.
Rully Arya Wisnubroto, head researcher at Mirae Asset Sekuritas, expects the inflation to decline further, supported by stable food prices. He also believed the planned value-added tax (VAT) increase to 12 percent in 2025 would have a minimal impact on consumer spending, as basic commodities will remain exempt.
"When VAT becomes 12 percent, as long as inflation is maintained, the impact on consumption will not be too significant. Moreover, household consumption in March and June, which is usually influenced by the seasonal effect, may be able to cover the impact," he said, as quoted by bisnis.com.
However, capital market practitioner Hans Kwee cautioned that global economic uncertainties, especially under potential United States trade policy shifts, may prevent the IDX Composite index from breaking the 8,000 level in 2025.
"Maybe we can't expect the 8,000 level in 2025, but it feels like our IDX Composite can move up to 7,700," said Hans.
