Indonesia Stock Market Faces Decline Amid Global Upsurge

The Indonesia stock market continues to struggle, dropping 2.6% in three sessions. Despite positive forecasts for Asian markets, local sectors, particularly finance and telecommunications, underperformed. Ongoing support from global markets may influence future trends.

Date: 31-01-2025

AI Rating: 5

Market Performance Overview
The report indicates that the Indonesia stock market, represented by the Jakarta Composite Index (JCI), has experienced a notable decline of over 180 points or 2.6 percent over the last three trading sessions. The most recent closing was at 7,073.48, indicating a significant downturn.

Sector Performance
Various sectors contributed to the decline, particularly the financial, telecom, cement, and resource sectors. Notably, Bank Central Asia and Semen Indonesia faced sharp losses of 2.14 percent and 3.40 percent, respectively, which points to underlying issues in these sectors.

Global Market Influence
Despite Indonesia's struggles, the report mentions a positive outlook for the Asian markets driven by expectations from oil, gold, and technology stocks. Additionally, the performance of U.S. markets was strong, with the S&P 500 and other major averages finishing higher. This could provide future support for the JCI if the trend continues.

Company Earnings and Guidance
Several well-known companies in the U.S. reported earnings that exceeded expectations, such as IBM and Meta Platforms, indicating strong performance in the technology sector. In contrast, Microsoft and UPS provided disappointing guidance despite decent earnings, which may introduce volatility in the broader market context. This fluctuation may impact investment sentiment worldwide, including in Indonesia.

Tariff Concerns
There are concerns regarding President Trump's tariff threats on imports from Canada and Mexico which could influence commodity prices, particularly oil. The oil futures market responded with marginal increases, possibly providing some relief to the resource sectors if such increases materialize.

Stocks: IBM META MSFT UPS