FX.co ★ Indonesia Equity Rout Worsens, Composite Index Down 34% YTD

Indonesian shares plunged 283 points, or 4.8%, to 5,653 in Thursday morning trade, extending the steep sell-off from the previous session and marking their lowest level since May 2021. The rout highlighted deepening worries over elevated oil prices, which are amplifying fiscal and external balance risks, alongside fears of increased government intervention in the commodities sector and anxiety about a potential unfavorable MSCI reclassification that could unsettle global investors.

The benchmark index has already dropped around 34% so far this year, making it the worst performer among more than 90 global equity gauges tracked by Bloomberg News. On the macro front, April trade data showed a shrinking surplus as soaring oil import costs outpaced export gains, while May inflation quickened to 3.08%, above the midpoint of the central bank’s target range.

U.S. stock futures were mostly lower as renewed tensions between the United States and Iran kept inflation concerns in focus. Selling pressure in Jakarta was broad-based, with all sectors declining, led by industrials, property, financials, and healthcare. Notable laggards included Barito Pacific (-13.9%), Darma Henwa (-10.2%), Indosat (-8.4%), and Kalbe Farma (-6.8%).