Indonesian Stocks Rise Nearly 1% on Foreign Inflows, BI Hike\nExpectations<\/p>\n
Jakarta. Indonesian stocks rose nearly 1% on Monday as renewed\nforeign buying and expectations of another Bank Indonesia interest rate\nhike outweighed concerns over escalating tensions in the Middle\nEast.<\/p>\n
Jakarta Composite Index (JCI) closed up 56 points, or 0.91%, at 6,231\nafter trading between 6,191 and 6,249.<\/p>\n
Trading volume reached 35.2 billion shares with a turnover of Rp 16.2\ntrillion ($903 million) across more than 2.38 million transactions.\nGainers outnumbered losers 399 to 210, while 185 stocks were\nunchanged.<\/p>\n
Pilarmas Investindo Sekuritas said sentiment toward Indonesian\nequities remained relatively positive, supported by the return of\nforeign investors. Foreign investors recorded a net buy of Rp 725.11\nbillion in the regular market at the end of last week.<\/p>\n
\u201cAlthough still limited, the buying indicates foreign investors are\nbeginning to take advantage of Indonesia\u2019s attractive stock valuations\nthrough bargain-hunting,\u201d Pilarmas said in a research note.<\/p>\n
The brokerage also pointed to Bank Indonesia\u2019s latest Business\nActivity Survey, which showed the second-quarter 2026 Prompt\nManufacturing Index (PMI) at 51.43, indicating the manufacturing sector\nremained in expansion territory.<\/p>\n
Separately, Trimegah Sekuritas Indonesia Chief Economist Fakhrul\nFulvian said Bank Indonesia should raise its benchmark interest rate by\nanother 25 basis points (bps) at its July 21-22 policy meeting, arguing\nthat Indonesia still needs stronger foreign capital inflows despite\nimproving market sentiment.<\/p>\n
\u201cBank Indonesia should continue with another 25 bps rate hike at the\nJuly meeting. The case is not based solely on current market conditions,\nbut also on the central bank\u2019s previously communicated pre-emptive\npolicy approach. Credibility is built when policy actions follow through\non that communication,\u201d Fakhrul said.<\/p>\n
He said the recent gains in the JCI and the rupiah reflected\nimproving investor confidence, but added that \u201cIndonesia still needs\nsubstantial foreign capital inflows this year. That positive momentum\nmust be reinforced through consistent and credible policies.\u201dAcross the\nregion, Asian markets traded mixed as investors continued to assess the\ninflationary risks stemming from the escalating conflict between the\nUnited States and Iran.<\/p>\n
Japan\u2019s markets were closed for a public holiday. South Korea\u2019s Kospi\ntumbled 4.5% to 6,516 as investors sold AI-related stocks. Samsung\nElectronics fell 4.7%, while memory chipmaker SK Hynix dropped 4.5%.<\/p>\n
Taiwan\u2019s Taiex slipped 0.5%. Taiwan Semiconductor Manufacturing\nCo.\u00a0(TSMC) rose 1.3% after plunging 7.3% on Friday following its\nannouncement of an additional $100 billion investment to expand chip\nproduction capacity in the United States.<\/p>\n
Hong Kong\u2019s Hang Seng gained 1.7% to 24,984, while China\u2019s Shanghai\nComposite Index edged down 0.1% to 3,761.<\/p>\n
Pilarmas said the US-Iran conflict had expanded to attacks on\ncritical infrastructure, disrupting shipments through the Strait of\nHormuz and driving oil prices higher.<\/p>\n
\u201cThe conflict between the US and Iran has expanded to target critical\ninfrastructure. Disruptions to shipping through the Strait of Hormuz\nhave pushed oil prices higher, intensifying concerns over global\ninflation,\u201d the brokerage said.<\/p>\n
Brent crude, the global benchmark, rose 3.2% to $90.95 per barrel,\nwhile US West Texas Intermediate crude gained 2.8% to $84.04 per\nbarrel.<\/p>\n
Pilarmas said higher energy prices could prompt central banks to keep\nmonetary policy tight or tighten further to contain inflation, adding\nanother source of uncertainty for global financial markets.<\/p>\n
On Wall Street, stocks ended last week lower. The benchmark S&P\n500 fell 1%, while the Dow Jones Industrial Average lost 0.8%. The\ntechnology-heavy Nasdaq Composite declined 1.4%.<\/p>\n
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