Indonesian stocks climbed 70 points, or 0.9%, to 7,086 in Tuesday’s morning session, breaking a four-day losing streak as bargain hunters moved in after the market hit an eight-month low in the previous session. Sentiment improved in line with Wall Street’s continued gains overnight, helped by a pullback in oil prices to below USD 100 per barrel. Expectations also firmed that the US Federal Reserve will keep interest rates unchanged at the conclusion of its two-day meeting on Wednesday.
On the domestic front, the government in Jakarta reiterated its commitment to fiscal discipline, emphasizing that the 3% of GDP budget-deficit ceiling would only be exceeded under severe crisis conditions. Most sectors advanced, led by basic materials, transport, and infrastructure. Notable early gainers included XLSmart Telecom (up 6.6%), Aneka Tambang (up 6.0%), and Unilever Indonesia (up 4.0%).
Investors are now focused on Bank Indonesia’s policy decision due later today, with markets widely expecting a sixth consecutive rate hold. The exchange will be closed on Wednesday for holidays and will reopen on March 25.
