FX.co ★ Indonesia Stocks Extend Slide as Oil Climbs, Floor Rule Axed

Indonesia’s IDX Composite fell 41 points, or 0.7%, to 6,203 in early Monday trade, extending its losing streak to a third session as risk sentiment deteriorated following a sharp drop in U.S. stock futures triggered by surging oil prices. The slide came after President Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, with reports indicating he anticipated U.S. military strikes to resume after the November midterm elections.

On the domestic front, the Indonesia Stock Exchange removed its long-standing Rp50 minimum share-price floor, effective Monday, allowing stocks on the regular and cash markets to trade as low as Rp1. Investors also remained wary of elevated oil prices and their potential impact on fiscal balances, while adopting a cautious stance ahead of upcoming trade and inflation data.

Losses were broad-based, led by technology, cyclical, and infrastructure stocks. Providing some offset, China’s industrial profits continued to grow over the first eight months of the year, though at a slower pace. Among notable laggards were Gojek Tokopedia (-14.0%), Indosat (-2.6%), and Hartadinata Abadi (-1.3%).