29.10.202502:59:54UTC+00Equities in Indonesia Retreat for 3rd Session

In early Wednesday trading, Indonesia's stock market experienced a decline of 43 points or 0.5%, bringing the index to 8,051. This marked the third consecutive day of losses, primarily driven by weakness in the energy minerals, utilities, and healthcare sectors. The market retreated further from the record highs reached last week, largely due to a drop in corporate group stocks post-MSCI's adjustment of free-float weightings. Investors remained cautious in anticipation of China's official PMI release later in the week, as well as local trade and inflation data expected next week.

Despite these challenges, an ongoing rally in Wall Street helped mitigate further declines. This positive influence was anchored by robust tech earnings, growing optimism surrounding a potential U.S.-China trade framework, and speculation regarding a potential Federal Reserve rate cut. Domestically, the introduction of new regulations permitting the central government to directly lend to local administrations and state-owned enterprises represented a significant structural change. This move positions Jakarta as a development lender with the aim of accelerating infrastructure and strategic expenditures. Among the early decliners were companies such as Dian Swastatika Sentosa (-5.9%), Elang Mahkota Teknologi (-4.2%), Bank Jago (-3.9%), and Sentul City (-3.2%).