FX.co ★ Indonesia Equities Extend Rally on Truce Announcement

Indonesia’s IDX Composite jumped 231 points, or 3.9%, to 6,238 in Monday morning trade, extending strong gains from the previous session and reaching a near two-week high. The advance came as U.S. stock futures rallied after President Trump announced an agreement to end the conflict with Iran and authorized the reopening of the Strait of Hormuz.

Domestically, investor attention turned to Bank Indonesia’s policy meeting later this week, amid expectations of further monetary tightening following a total of 75 bps in rate hikes since May to support the rupiah. Last week, Deputy House Speaker Sufmi Dasco called on citizens to sell U.S. dollars to help stabilize the currency, which has repeatedly hit record lows.

Gains on the IDX were tempered by caution ahead of May activity data from China, Indonesia’s largest trading partner, due on Tuesday. All sectors advanced, led by industrials, infrastructure, transportation, and property. Notable gainers included Amman Mineral International (up 10.1%), Darma Henwa (7.3%), Bumi Resources (7.3%), Hartadinata Abadi (7.2%), and Astra International (4.2%). The market will be closed on Tuesday for a public holiday.