Jakarta \u2014 The Jakarta Composite Index (IHSG) of the Indonesia Stock\nExchange (BEI) in the first trading session today, Wednesday (20 May),\nclosed lower, weighed down by shares in the basic materials\n(commodities) and energy sectors.<\/p>\n
IHSG in Session I closed down 38.50 points, or 0.60 percent, to\n6,332.18. Meanwhile, the LQ45 index of 45 leading stocks rose by 0.23\npoints, or 0.04 percent, to 635.05.<\/p>\n
\u201cMarkets are watching the President\u2019s speech on the direction of\neconomic and fiscal policy going forward, including the formation of a\nspecial body for commodity exports, which has sparked concerns in\ncommodity-based stocks, as markets fear there may be intervention in\nexport mechanisms or margins for emitents,\u201d said market observer Elandry\nPratama when contacted in Jakarta on Wednesday.<\/p>\n
In addition, Elandry explained, traders are adopting a wait-and-see\nstance ahead of the Bank Indonesia (BI) Board of Governors (RDG)\nMeeting\u2019s announcement on the BI-Rate later today.<\/p>\n
\u201cMarkets are quite sensitive to the direction of monetary policy\nbecause it directly affects rupiah stability and foreign capital flows,\u201d\nhe said.<\/p>\n
\u201cMoreover, the efficiency of the budget for the Free Nutritious Meals\n(MBG) programme, estimated to fall from Rp335 trillion to around Rp268\ntrillion, is positive for Indonesia\u2019s fiscal perception as it shows\nefforts to maintain the discipline of the APBN,\u201d he added.<\/p>\n
\u201cHowever, sentiment is not strong enough to hold back selling\npressure across the market,\u201d he added.<\/p>\n
\u201cFrom overseas, the main pressure still stems from high uncertainty\nover the path of the Fed\u2019s interest-rate trajectory and the\nstrengthening dollar, which makes foreign funds tend to be more\nselective toward emerging markets, including Indonesia,\u201d he\nexplained.<\/p>\n
\u201cAdditionally, rising US Treasury yields are prompting global\ninvestors to shift toward safer assets for now,\u201d he added.<\/p>\n
\u201cMarkets remain haunted by concerns about a global economic slowdown\nand geopolitical tensions, which reduces appetite for risk assets,\u201d he\nsaid.<\/p>\n
\u201cFor foreign investors, there is still a tendency to stay cautious\nand defensive, with relatively active profit-taking especially in\nbig-cap banks and commodity stocks that previously supported the index,\u201d\nhe concluded.<\/p>\n
\u201cForeign investors will remain highly dependent on Rupiah stability,\nthe direction of the BI Rate, and perceptions of the government\u2019s fiscal\ncredibility going forward. If the rupiah stabilises and global pressures\nease, the window for foreign inflows could reopen,\u201d he added.<\/p>\n
\u201cIn the short term, I project the IHSG will continue to move in a\nvolatile pattern with a sideways to slightly downward bias as the market\ndigests domestic and global sentiment. Yet if BI decisions help maintain\nRupiah stability and the government sustains market confidence in fiscal\npolicy, a technical rebound remains possible,\u201d he added.<\/p>\n
\u201cI see defensive sectors, large banks, domestic consumption, and\nstocks with strong fundamentals as still likely to be the main choices\nfor investors in the current market conditions,\u201d he concluded.<\/p>\n
At the close of Session I, trading frequency stood at 1,600,448\ntransactions, with 27.55 billion shares traded valued at Rp13.67\ntrillion. A total of 165 shares rose, 521 fell, and 128 remained\nunchanged.<\/p>\n
According to the IDX-IC sector index (IDX-IC), nine sectors declined,\nled by Transport & Logistics (down 4.12%), followed by Basic\nMaterials (down 4.07%) and Energy (down 2.73%).<\/p>\n
The biggest gainers included INTD ZONE, APIC, MORA and INDR, while\nthe biggest losers included UANG, RLCO, TPIA, WBSA, and SMMT.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-in-session-i-falls-dragged-by-basic-materials-and-energy-sectors-1779545818", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }