FX.co ★ Indonesia Shares Rise After Recent Losses

On Wednesday afternoon, Indonesia's IDX Composite rose by 25 points, equivalent to a 0.3% increase, reaching a level of 8,392. This uptick ended a two-day decline, fueled by signals of potential gains on Wall Street, as indicated by U.S. futures, and optimism that the prolonged U.S. government shutdown might soon conclude. Positive sentiment was further boosted by the Chinese central bank's commitment to maintaining a "suitably loose" monetary policy and strengthening policy transmission to support economic growth, particularly significant due to China's role as Indonesia's primary trading partner. Domestically, Bank Indonesia forecasted inflation to be 2.62% by 2026 and adjusted its credit growth target to a range of 8%–12%, slightly higher than this year's target of 8%–11%. However, the market's advance was restrained by ongoing foreign capital outflows affecting major banks and investor caution in anticipation of next week’s third-quarter current account data, which follows the second quarter's ninth consecutive deficit, the largest in three years. Leading the market's gains were sectors such as communications, process industries, and industrial services, with notable movements from companies like Barito Pacific (up 4.5%), Indah Kiat Pulp & Paper (up 3.7%), and Mayora Indah (up 2.4%).