Indonesian financial markets are expected to remain volatile this\nweek. Investors will be closely monitoring the sustainability of the\nrecent rally in the Composite Stock Price Index (IHSG) and the rupiah,\nthe direction of the US dollar, and evolving global and domestic\nsentiment.<\/p>\n
The IHSG surged on Friday, driven by a strong rebound in major\nbanking stocks. The index closed up 67.32 points, or 1.1%, at 6,173.53.\nMarket activity was robust, with total transaction value reaching\nRp16.32 trillion, significantly higher than the recent average of around\nRp10 trillion. The rally was led by big-cap banks, with PT Bank Central\nAsia Tbk (BBCA), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank\nMandiri (Persero) Tbk (BMRI), and PT Bank Negara Indonesia (Persero) Tbk\n(BBNI) collectively contributing 54.7 points to the index\u2019s gain.<\/p>\n
Analyst Elandry Pratama from Panin Sekuritas attributed the banking\nsector\u2019s strength to a technical rebound following significant prior\npressure, prompting investors to accumulate stocks with strong\nfundamentals and high liquidity. The rally was also supported by a more\nlimited foreign capital outflow, with foreign investors recording a net\nbuy of Rp638.57 billion on Friday.<\/p>\n
The rupiah also strengthened sharply against the US dollar, closing\nhigher after consistently trading in the green throughout Friday\u2019s\nsession. The currency\u2019s appreciation was in line with a weakening\ngreenback, which fell after lower-than-expected US inflation data eased\nmarket fears of an imminent interest rate hike by the Federal Reserve.\nWhile the US economy remains relatively strong, economists expect the\nFed to hold rates steady at its upcoming meeting. The CME FedWatch Tool\nshowed the probability of a July rate hike falling to 11% from 25% a\nweek earlier.<\/p>\n
However, pressure is mounting from Wall Street, where major indices\nposted weekly losses. The S&P 500 fell 1.01% on Friday, the Nasdaq\nComposite dropped 1.4%, and the Dow Jones Industrial Average declined\n0.77%. The technology sector, particularly semiconductor stocks, was the\nbiggest drag. The VanEck Semiconductor ETF recorded its third weekly\ndecline in four weeks, falling nearly 9% for the week. The sell-off was\ntriggered by Chinese AI startup Moonshot AI unveiling a new model that\nreportedly rivals leading US offerings, sparking concerns about the\nsustainability of massive technology spending. Analysts noted that the\nmarket is showing signs of \u2018AI fatigue\u2019, with investors becoming more\nsensitive to costs and punishing companies with aggressive spending\nplans. Adding to the negative sentiment, Netflix shares fell over 7%\nafter its future projections failed to alleviate concerns about slowing\ngrowth.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/seven-pressing-concerns-that-could-rattle-indonesia-this-week-1784505032", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }