FX.co ★ Indonesian Shares Rise Further Ahead of GDP Data

Indonesia’s IDX Composite advanced 33 points, or 0.5%, to 6,351 in Wednesday morning trade, extending the previous session’s gains. Sentiment was supported by firmer U.S. stock futures following another strong rally on Wall Street overnight that drove the broader market to a fresh record high, buoyed by solid corporate earnings and speculation over a potential U.S.–Iran agreement to reopen the Strait of Hormuz.

On the domestic front, a softer July headline inflation print provided short-term relief amid volatile food prices and seasonal back-to-school spending pressures. Market participants also welcomed greater clarity on the rare-earth export ban, as exports of nickel, tin, and other commodities containing trace elements were allowed to resume.

Upside in the index was limited, however, by investor caution ahead of Q2 GDP data due later in the day, with growth expected to moderate from Q1’s 5.6% year-on-year pace. Attention also turned to July trade figures from China, Indonesia’s top trading partner, which are scheduled for release later this week.

Sector-wise, property, basic materials, and energy outperformed. Timah Tbk gained 3.9%, followed by Aneka Tambang with a 3.5% rise, Agung Podomoro up 2.4%, and Indika Energy higher by 1.2%.