FX.co ★ Indonesia Market Maintains Record Highs

Indonesia’s IDX Composite reached a new high of 9,142 in morning trading on Tuesday, marking its fifth consecutive rise. Investors are strategically positioning themselves before Bank Indonesia announces its policy rate decision on Wednesday, as the board convened today. Current expectations suggest that interest rates will remain unchanged; however, there is ongoing speculation about potential rate cuts to stimulate economic growth. Despite this optimism, sentiment was affected by a downturn in U.S. futures. Meanwhile, President Prabowo Subianto's nomination of his nephew to the central bank’s board has raised concerns about the independence of the institution. There are also growing anxieties regarding MSCI's upcoming methodology changes, which might lead to foreign investors pulling out from domestic stocks in the coming months. Notable gains were seen in the property, non-cyclical, and technology sectors. Among the early top performers were some lesser-known companies, such as Indonesia Fibreboard Industry with a 25% rise, Era Digital Media at 22.8%, Abadi Lestari Indonesia with a 20% increase, and Dharma Samudera Fishing up by 8.5%.