Jakarta, CNBC Indonesia \u2014 The Jakarta Composite Index (JCI) ended the\nfirst trading session in negative territory on Wednesday (28 October\n2026), at 5,179.06, down 87.07 points or 1.65%.<\/p>\n
The index fluctuated throughout the morning, briefly recovering\ntowards 5,250 at around 9.30am WIB before coming under renewed pressure\nafter 10am. Selling intensified towards the end of the first hour, with\nthe index dropping sharply to around 5,180 and then moving sideways at\nthat level until midday.<\/p>\n
Trading volume stood at 164.77 million lots, with transactions worth\nRp7.25 trillion.<\/p>\n
Global and domestic financial markets are likely to adopt a\nwait-and-see stance ahead of the US Federal Reserve\u2019s interest-rate\ndecision. The Fed is expected to announce its policy within the next 18\nhours.<\/p>\n
Several domestic factors are also likely to weigh on share and\ncurrency movements, including student demonstrations and falling demand\nat government bond auctions.<\/p>\n
The key market factors today are:<\/p>\n
1. The Fed\u2019s October 2026 interest-rate decision<\/strong><\/p>\n The Fed is set to announce its interest-rate decision on Wednesday US\ntime, or Thursday (29 October) at 1am WIB, followed by a press\nconference at 1.30am.<\/p>\n The market consensus is for the US central bank to keep rates at\n3.75%-4.00%, following a 25-basis-point increase in September.<\/p>\n Although rates are expected to remain unchanged, investors will focus\non Fed Chair Kevin Warsh\u2019s remarks on the inflation outlook,\nlabour-market conditions and the possibility of further tightening.<\/p>\n A more hawkish stance could strengthen the US dollar and put pressure\non risk assets, including emerging-market shares. Conversely, signals\nthat inflationary pressures are easing could give markets reason to\nreassess the US monetary-policy outlook.<\/p>\n For Indonesia, the Fed\u2019s policy direction is an important factor that\ncould affect the rupiah, foreign capital flows and the attractiveness of\nIndonesian government bonds (SBN).<\/p>\n 2. Demand falls at government bond auction<\/strong><\/p>\n Investor demand at Tuesday\u2019s (27 October 2026) government bond\nauction fell sharply. Total bids amounted to just Rp31.09 trillion, down\n52.1% from the previous auction and the lowest level since November\n2024.<\/p>\n Despite weak demand, the weighted average yield awarded on bonds with\na maturity of around 10 years jumped to 7.54%, its highest since\nNovember 2022. This was up 30 basis points in two weeks and around 147\nbasis points compared with the start of 2026.<\/p>\n The government raised only Rp20.65 trillion, below its indicative\ntarget of Rp30 trillion. The combination of weaker bids and higher\nyields points to financing pressure and could make new government\nborrowing more expensive.<\/p>\n The sharp fall in demand for SBN is raising concerns that outflows\ncould continue, weakening shares and the rupiah.<\/p>\n 3. Chinese industrial profits rise<\/strong><\/p>\n Chinese industrial profits rose 15.5% year on year to CNY6.03\ntrillion in the first nine months of 2026. Growth eased slightly from\n15.7% in January-August 2026.<\/p>\n Profits continued to be supported by high-tech manufacturing,\nartificial intelligence (AI)-related industries and electronic\nequipment. However, sluggish domestic demand continued to weigh on some\nsectors.<\/p>\n Profits at state-owned enterprises rose 13.1% to CNY1.94 trillion.\nJoint-stock companies recorded a 20.8% increase to CNY4.67 trillion,\nwhile private companies\u2019 profits grew 8.7% to CNY1.51 trillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jci-ends-first-session-down-1-65-at-5-179-1793166672",
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