Jakarta Stocks Slip Despite Improving Consumer Confidence<\/p>\n
Jakarta. Indonesian stocks reversed early gains on Thursday, slipping\ninto negative territory after opening at 6,688 as investors weighed\ncautious global sentiment ahead of key US inflation data.<\/p>\n
Jakarta Composite Index (JCI) moved between 6,661 and 6,712 during\nthe session. Trading volume reached 9.7 billion shares, with turnover of\nRp 5.6 trillion ($319.66 million) across more than 575,000\ntransactions.<\/p>\n
A total of 196 stocks gained, 318 declined and 213 were\nunchanged.<\/p>\n
Phintraco Sekuritas said domestic consumer confidence improved in\nAugust, with Indonesia\u2019s Consumer Confidence Index (CCI) rising to 118.5\nfrom 116.8 in July. The increase marked the first monthly gain in four\nmonths.<\/p>\n
The improvement was supported by stronger consumer assessments of\ncurrent economic conditions and higher expectations for the months\nahead. The Current Economic Conditions Index rose to 109.4 in August\nfrom 107.9 in July, while the Consumer Expectations Index climbed to\n127.6 from 125.7.<\/p>\n
Indonesia\u2019s auto market also showed stronger activity in August. Car\nsales rose 32.4% year-on-year (yoy) to 81,756 units, the highest level\nin six months, although growth slowed slightly from 33.3% yoy in July.\nPhintraco attributed the increase partly to the Gaikindo Indonesia\nInternational Auto Show (GIIAS) 2026, held from July 29 to Aug.\u00a09, which\nboosted sales in both July and August.<\/p>\n
Motorcycle sales, meanwhile, grew 3.18% yoy to 596,461 units in\nAugust, slowing from 8.3% yoy growth in July amid higher inflation.<\/p>\n
Phintraco said Indonesia\u2019s retail sales data was scheduled for\nrelease Thursday, with sales expected to contract 3.3% yoy in July after\ndeclining 3% yoy in June.<\/p>\n
Kiwoom Sekuritas Indonesia said the government is targeting a\ngovernment debt-to-GDP ratio of 40.31%-40.64% in 2027 as one of its\nperformance indicators for financing management and sovereign risk.<\/p>\n
The government is also targeting a 100% success index for deepening\nthe domestic government bond market while continuing to expand the\nretail government bond investor base, which has reached around 1.081\nmillion investors.<\/p>\n
Retail government bond issuance is targeted at Rp 160 trillion-Rp 170\ntrillion in 2026, up from Rp 152 trillion in 2025.<\/p>\n
Globally, Kiwoom said market sentiment remained negative ahead of US\ninflation data, which will be a key reference for the Federal Reserve\u2019s\npolicy direction.<\/p>\n
\u201cThe market estimates the chance of a 25-basis-point rate cut at the\nSeptember 16 meeting still stands at around 60%. Investors will watch\nthe Producer Price Index (PPI) and Consumer Price Index (CPI) data, with\nhigher-than-expected inflation potentially increasing pressure on risk\nassets,\u201d Kiwoom said in its report Thursday.<\/p>\n
Pluang Research pointed to mounting pressure in the US bond market,\ndescribing it as a \u201csnowball effect\u201d that has been difficult to see on\nthe surface.<\/p>\n
The firm said investors concerned about further increases in 30-year\nTreasury yields have been buying options as protection, while dealers\nselling those options have been hedging their exposure by selling bonds\nor entering swap contracts.<\/p>\n
\u201cThe thing is, these hedging actions are actually pushing yields even\nhigher, creating a self-reinforcing cycle. A similar thing is happening\nin the mortgage-backed bond market after the Fed reduced its holdings,\nwith the risk now largely held by private investment managers that are\nmore aggressive in hedging their positions,\u201d Pluang Research said\nThursday.<\/p>\n
\u201cThe combination of a large US budget deficit and these\nself-reinforcing market mechanisms explains why investors are starting\nto seek protection outside dollar assets,\u201d it added.<\/p>\n
On Wall Street, stocks closed lower Wednesday after investors were\ndisappointed by a US Treasury buyback program that was smaller than\nexpected. The S&P 500 fell 0.48%, while the Nasdaq Composite\ndeclined 0.64% and the Dow Jones Industrial Average dropped 0.77%.<\/p>\n
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