The IDX Composite advanced 83 points, or 1.1%, reaching 7,941 by midday on Monday, recovering from declines in the last two trading sessions. This upward movement was influenced by gains observed on Wall Street the previous Friday, as Federal Reserve Chair Powell's speech at Jackson Hole hinted at the potential for a rate cut in September. The index is currently just shy of its all-time high of 7,943.8, achieved on August 20. All sectors recorded positive performance, with the technology sector leading the way with a 2.1% increase, closely followed by primary consumer and financial stocks.
Investors are now focusing on significant U.S. economic reports expected later this week, particularly the Personal Consumption Expenditures (PCE) Index and the second estimate for Q2 GDP. On the domestic front, Bank Indonesia unexpectedly lowered its benchmark interest rate by 25 basis points to 5% last week. Meanwhile, in fiscal developments, Indonesia’s House of Representatives and the government have set a 2026 economic growth target of 5.4%, alongside an inflation target of 2.5%. Leading the market gains were stocks like Gudang Garam (up 2.3%), BRI (up 1.7%), and Mandiri (up 1.4%).
