Indonesian shares fell 90 points, or 1.2%, to 7,010 in Monday morning trade, extending losses for a third consecutive session. Sentiment weakened as U.S. stock futures declined amid the ongoing conflict in the Middle East, stoking concerns over higher inflation and a potential global recession. According to Reuters, markets now price in 12 bps of additional Federal Reserve tightening this year, a sharp reversal from expectations of 50 bps of rate cuts just a month ago.
Investor caution also intensified ahead of key domestic data releases this week, including March inflation and February trade figures. Inflation accelerated to 4.76% in February, its highest level in nearly three years and above Bank Indonesia’s target range. At the same time, January imports jumped ahead of Ramadan and Eid al-Fitr, putting pressure on the trade balance.
Some losses were tempered by newly announced central bank measures aimed at curbing speculation in the rupiah, which took effect on April 1st. Still, declines were broad-based, led by financial, cyclical, and property stocks. Among the worst performers were MD Entertainment (-7.4%), Buana Lintas Lautan (-4.7%), Vale Indonesia (-4.7%), Chandra Asri Pacific (-4.5%), and Transcoal Pacific (-4.3%).