FX.co ★ Indonesian Shares Drop for 3rd Session as November Begins

Indonesian stocks fell 39 points, or 0.8%, to 5,022 on the first trading day of the new month, extending losses into a third consecutive session. Investor sentiment remained cautious ahead of the release of September trade figures and October inflation data later in the day. In August, imports again outpaced exports, underscoring external vulnerabilities, particularly those linked to tensions in the Middle East. At the same time, September inflation quickened to a three-month high of 3.28%, driven by El Niño-related food price pressures.

Even so, gains in U.S. equity futures helped limit the decline, as investors looked ahead to a fresh batch of corporate earnings, labor market data, and the midterm elections. Domestically, Indonesia’s manufacturing sector registered its strongest expansion since March 2024, with output, new orders, and foreign demand all improving.

In the broader region, China’s central bank adjusted its short-term monetary policy framework toward the overnight rate, bringing it closer to the operating practices of major global central banks. Among the session’s notable laggards were Adaro Andalan Indonesia (-6.5%), Mitra Adiperkasa (-5.7%), and Bukit Asam (-3.1%).