FX.co ★ Indonesia Markets Retreat on Profit-Taking, Global Caution

Indonesian shares declined 58 points, or 0.8%, to 7,244 in Thursday’s morning session, snapping a two-day winning streak as traders locked in profits. Sentiment was pressured by a slight pullback in U.S. stock futures and lingering uncertainty over fast-evolving developments in the Middle East. Caution also intensified ahead of key domestic releases next week, including March inflation data and February trade figures.

Even so, the downside was limited by confidence in the resilience of Indonesia’s economy, underpinned by robust seasonal consumption during Ramadan and the Eid holidays. In policy news, Bank Indonesia reduced the ceiling for monthly cash foreign-exchange purchases to USD 50,000 from USD 100,000, effective April 1, in an effort to contain speculative pressure on the rupiah.

Most sectors on the IDX traded lower, led by industrials, energy, and financials. Among the early notable decliners were Vale Indonesia (-3.9%), Astra International (-3.4%), Telkom Indonesia (-3.3%), and Trimegah Bangun Persada (-2.1%).