FX.co ★ Indonesian Equities Rally After BI Rate Decision

Indonesian shares climbed 69 points, or 1.1%, to 6,465 in early Thursday trading, rebounding from the previous session’s losses with broad-based gains across major sectors. Sentiment improved after Bank Indonesia left its benchmark interest rate unchanged at 5.75% for a second consecutive month on Wednesday, in line with expectations, following a cumulative 100-basis-point tightening cycle since May.

In key trading partner China, lending benchmarks were also kept steady for a 15th straight month, with the one- and five-year loan prime rates (LPRs) maintained at record lows to underpin economic growth.

Nonetheless, caution persisted ahead of the release of Q2 current account figures later this week, after the Q1 deficit widened to its largest level since 2019 amid softer trade performance.

Separately, FTSE Russell announced it will postpone additions, upgrades, and weight increases for Indonesian equities until at least its December review as it continues to assess ongoing market reforms.

Early notable gainers included Hartadinata Abadi (+8.3%), Amman Mineral International (+7.2%), Vale Indonesia (+3.4%), and Aneka Tambang (+3.3%).