IDX Composite Breaks Out to Six-Month High as Foreign Buying Returns
Indonesian banks and energy majors led a broad rally, with net foreign inflows reaching $420 million over five sessions — the longest streak of the year.
The Jakarta Composite Index closed at 7,384 on Wednesday, its highest level since October, as foreign investors returned to Indonesian equities for a fifth consecutive session.
Bank Central Asia and Bank Mandiri were among the largest point contributors, while state-owned energy major Pertamina Geothermal Energy added 3.2% on upgraded earnings guidance.
Analysts at Mandiri Sekuritas said the rally reflects easing pressure on the rupiah, which has stabilized near 16,250 per dollar after Bank Indonesia held its policy rate at 5.75% last week.
“The setup for the second half looks constructive,” wrote equity strategist Adrian Joezer in a note to clients. “If the Fed cuts as expected, Indonesian equities typically outperform the region by 4 to 6 percentage points in the subsequent two quarters.”
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