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Indices

Indonesian Shares Set to Close Week Sharply Higher

Indonesia’s IDX Composite edged up 15 points or 0.2% to 6,676 in early Friday trade, holding gains from the prior session and touching its highest level in 3-1/2 months. Sentiment was supported by an overnight Wall Street rally after Fed Governor Waller’s dovish remarks prompted traders to pare back rate-hike bets. Confidence also improved with a smooth leadership transition at Bank Indonesia, as newly inaugurated Governor Destry Damayanti pledged responsive policy to safeguard stability and economic growth. However, upside was tempered by caution ahead of key domestic data due next week, including August forex reserves, consumer sentiment, and July retail sales. Inflation worries also lingered after August figures accelerated amid potential El Niño-related food supply disruptions. Notable movers included Indah Kiat Pulp & Paper (1.7%), Mitra Adiperkasa (1.1%), and Bumi Resources (1.0%). For the week, the market is on track to post solid gains of about 2.7%, reversing prior declines.

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