IHSG slides again to 6,094.94, pressured by energy stocks
The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed lower on Thursday afternoon, pressured by shares in the basic materials and energy sectors. The IHSG closed down 223.56 points, or 3.54%, at 6,094.94. Meanwhile, the LQ45 index, comprising 45 leading stocks, fell 14.28 points or 2.26% to 616.40.
Market participants responded to plans to issue a Government Regulation on the Governance of Exports of Natural Resource Commodities, including provisions designating state-owned enterprises as sole exporters for a number of strategic commodities. They also responded to the establishment of PT Danantara Sumberdaya Indonesia (DSI) as a state-owned special exporter for the natural resources sector. PT DSI sits directly under the Danantara Investment Management Agency (BPI Danantara), with the main task of strengthening the governance of exports for several strategic commodities, such as palm oil (CPO), coal, and ferro alloys.
One of the stated reasons for forming a dedicated export SOE is alleged under-invoicing in commodity exports, said to have cost the state up to Rp 15,400 trillion over 34 years.
Opening weaker, the IHSG remained in negative territory through the close of the first trading session. In the second session, the IHSG remained in the red through to the close of trading.
According to the IDX-IC sector indices, all eleven sectors were down, with the basic materials sector the biggest loser, down 6.96%, followed by the energy sector (6.74%) and the non-prime consumer goods sector (5.70%).
The stocks with the largest gains were SOTS, BOBA, ENAK, APLI and KOBX. The stocks with the biggest price declines were BUKK, IRSX, ENRG, POLU, and RAJA.
Trading frequency reached 2,145,783 transactions, with 35.77 billion shares traded valued at Rp18.49 trillion. A total of 88 shares rose, 663 fell, and 69 were unchanged.
Across Asia, Nikkei rose 1,853.59 points or 3.10% to 61,658.00; Shanghai declined 84.91 or 2.04% to 4,007.28; Hang Seng fell 264.60 points or 1.03% to 25,386.52; Strait Times rose 0.80 points or 0.02% to 5,045.71.
Editor’s note: What are the negative impacts of establishing a dedicated export SOE.