Indonesian stocks experienced a rise of 41 points, or 0.5%, reaching 8,402 in early trading on Wednesday. This movement marks a recovery from the previous session's downturn, with significant contributions from the healthcare, communications, and financial sectors. The positive sentiment was further bolstered by a slight increase in U.S. futures, following a four-day decline of the S&P 500 and Dow. This decline was largely driven by apprehensions regarding potentially overinflated AI valuations ahead of Nvidia’s earnings report, as well as ongoing uncertainties about the Federal Reserve's interest rate strategy.
Investor confidence received additional support from the International Monetary Fund (IMF), which praised Indonesia as a standout performer on the global stage, despite challenging external conditions. However, gains were somewhat restricted by investor caution ahead of the policy decision from Bank Indonesia scheduled for later today. Governor Perry Warjiyo has indicated that the current low inflation environment might allow for future interest rate reductions, following a cumulative 150 basis points of rate cuts since September 2024.
Among noteworthy companies, Kalbe Farma saw an increase of 4.2%, Jhonlin Agro Raya rose by 2.0%, Energi Mega Persada increased by 1.6%, and Pertamina Geothermal Energy went up by 1.3%.
