FX.co ★ Indonesia Shares Extend Strength

Indonesian equities advanced 57 points, or 1.0%, to 5,751 in early Thursday trading, extending gains for a second consecutive session as buying broadened across major sectors. The market moved further off a three-week low, tracking firmer U.S. equity futures following the start of indirect U.S.–Iran talks in Doha on Tuesday.

Domestically, sentiment was supported by ongoing government measures, including cuts to industrial LNG prices, food security initiatives, and capital market reforms. However, upside was restrained by new data showing the trade balance unexpectedly swung into deficit in May—the first shortfall since April 2020—as exports declined and imports rose sharply. At the same time, inflation climbed to a three-month high in June, driven by higher food prices.

Adding to concerns, Fitch Ratings cautioned that a sustained decline in foreign-exchange reserves could weigh on Indonesia’s sovereign credit profile. Among notable gainers were Hartadinata Abadi (up 5.7%), Barito Pacific (4.7%), Elang Mahkota (3.7%), and Bank Central Asia (3.1%).