Indonesia’s IDX Composite climbed 40 points, or 0.7%, to 5,422 in early Friday trading, advancing for a fourth consecutive session amid gains in energy, cyclical, industrial, and infrastructure stocks. Sentiment improved following exchange reforms that will exclude stocks classified as having High Shareholding Concentration from composite index calculations starting November 2. The change comes in response to MSCI’s warning that Indonesian equities risk being downgraded from emerging-market to standalone-market status.
At the same time, several listed companies, including major banks, have launched share buyback programs to help restore investor confidence and support falling valuations. Upside, however, was limited by fiscal concerns as Brent oil prices hovered near USD 100 per barrel, while accelerating food prices added to inflationary pressures.
Bukit Asam gained 3.5%, Astra International rose 2.9%, and XLSmart Telecom advanced 2.5%. For the week, the IDX Composite was on track to gain about 4%, partially rebounding from a nearly 15% plunge in the previous week.
