FX.co ★ Indonesia Equities Trade Modestly Lower

Indonesian shares edged lower in early Thursday trade, hovering around 6,028 after two sessions of muted momentum. Sentiment came under pressure from weaker U.S. stock futures, despite Wall Street’s higher close overnight on the back of softer inflation data and a solid start to Q2 earnings season.

Persistently high oil prices kept investors cautious, stoking concern over Indonesia’s import costs as the country remains a net oil importer. Attention also turned to Bank Indonesia’s policy meeting next week, after the central bank raised rates by a cumulative 100 bps in May–June to support the rupiah.

Downside pressure was partly offset by local media reports that the government is preparing fiscal and market measures to contain inflation, with a particular focus on volatile food prices and rising industrial input costs.

In China, weaker-than-expected Q2 GDP data strengthened expectations for additional stimulus ahead of the Politburo meeting scheduled for late July.

Among notable decliners were Sumber Global Energy (-4.1%), Sentul City (-3.1%), Rukun Raharja (-2.7%), and United Tractor (-1.7%).