FX.co ★ Indonesia Stocks Trade Slightly Lower as July Begins

Indonesian shares slipped in volatile trade at the start of July, hovering around 5,613 in the morning session and holding near a three-week low. Sentiment was pressured by a sharp decline in U.S. futures after Wall Street closed its strongest quarter in six years overnight, with continued fallout from the Iran war and sharp swings in chip stocks keeping global volatility elevated.

Domestically, investors remained cautious ahead of today’s releases of June inflation and May trade data. May inflation had already quickened toward the upper end of Bank Indonesia’s 1.5%–3.5% target range, while April’s trade surplus had narrowed to its smallest since 2020 as imports grew faster than exports.

Even so, the market’s losses were partially offset by government measures to cut industrial LNG prices, helping to support energy affordability. Meanwhile, foreign inflows into government bonds and Bank Indonesia securities continued to strengthen, totaling about USD 9 billion through the end of June.

On the equity front, notable underperformers included Charoen Pokphand (-7.1%), United Tractors (-3.9%), Pertamina Geothermal Energy (-3.3%), and Bank Tabungan Negara (-2.3%).