FX.co ★ Indonesian Shares Slip Slightly After Hitting Record Peak

In Friday's morning trade, Indonesia's equity market experienced a decline, with the index dropping by 19 points, or 0.2%, to settle at 8,232. This downturn came after a volatile session in which traders opted to secure their profits following the previous day's peak performance. The IDX Composite reflected overnight losses from Wall Street, as investors took a breather to reassess recent exuberant sentiments, including optimism about AI advancements, prospective interest rate reductions, and the implications of the ongoing US government shutdown. Despite a Thursday announcement from the finance minister, expressing confidence in achieving a 6% GDP growth next year aided by a liquidity boost, market sentiment remained bearish. Traders continued to weigh in on this week's lackluster economic indicators, highlighting the slowdown in Indonesia's retail sales growth for August. Consumer confidence plummeted to its lowest since April, accompanied by a decline in foreign exchange reserves to their lowest level in 14 months. The banking sector bore the brunt of the sell-off, with significant losses, including BRI down by 3.6%, BNI falling by 3.25%, Bank Mandiri dropping 2.7%, and BCA declining by 2.0%.