FX.co ★ Indonesia Stocks Extend Strength to Hit Fresh High

Indonesia's IDX Composite index climbed by 28 points, or 0.3%, reaching a new high of 8,726 during Thursday's trading session, marking its second consecutive day of gains. This advance was driven by growth in the communications, industrial services, and consumer durables sectors. The positive momentum was supported by a strong performance on Wall Street overnight, where the U.S. Federal Reserve executed its third quarter-point rate cut of the year as anticipated, despite its projections indicating a further rate cut in 2026. However, the gains were somewhat restrained due to investors exercising caution ahead of Bank Indonesia's upcoming policy meeting. In November, the central bank maintained its benchmark interest rate at 4.75%, following a cumulative 150 basis point reduction since September 2024. Nonetheless, inflationary pressures are mounting due to logistical challenges caused by recent natural disasters in Sumatra. Concurrently, the government has announced plans to implement stricter regulations in 2026, mandating that natural resource exporters deposit all export revenues in state-owned banks. Early market leaders included Alamtri Minerals (up 4.3%), VKTR Teknologi (up 4.2%), Timah (up 4.0%), and Allo Bank (up 2.4%).