FX.co ★ Indonesian Shares Continue Losing Streak Amid Sell-off

Indonesia’s IDX Composite dropped 270 points, or 5.2%, to 4,915 in early Monday trading, extending its losing streak to a third session and hitting its lowest level since October 2020. The sell-off intensified as investors retreated from risk assets following MSCI’s proposed downgrade of Indonesia’s market classification and a spike in global crude prices above $105 per barrel.

In response to heightened volatility, the exchange announced a cut to its auto-rejection limit to 7% from 15%, effective Monday through year-end, in an effort to support more measured investor decision-making. Separately, on Friday, regulators imposed substantial administrative fines totaling IDR 2.1 trillion on parties linked to trading activities and IPOs involving three major companies.

A rebound in U.S. stock futures and stronger-than-expected Q3 GDP data from China, Indonesia’s key trading partner, provided some marginal support, but selling remained broad-based across basic materials, transportation, property, and financial sectors. Among the notable laggards were Sinergi Inti Andalan (-7.0%), Bank Central Asia (-6.9%), AKR Corp. (-6.8%), and Mayora Indah (-6.6%).