FX.co ★ Indonesian Shares Recoup Early Losses in Afternoon Trade

Indonesian shares rose 44 points, or 0.9%, to 5,113 on Monday afternoon, rebounding from early losses as risk appetite improved amid stronger U.S. stock futures and declining oil prices. The move in oil followed reports of renewed U.S.-Iran diplomatic efforts aimed at easing tensions in the Middle East.

Investors are also positioning ahead of more corporate earnings releases, key U.S. labor-market data, and the upcoming midterm elections. Domestically, sentiment received an additional boost from a stronger-than-expected trade surplus in September, with exports outpacing forecasts while imports unexpectedly slowed.

At the same time, the Indonesian bourse formally rolled out a major reform by excluding 81 stocks categorized as having High Shareholding Concentration from its benchmark index calculations. The reform was accelerated following MSCI’s warning that Indonesia risked a downgrade in its market classification.

Most sectors finished higher, led by basic materials, energy, and infrastructure. Among the most actively traded gainers were Darma Henwa (up 10.3%), Bumi Resources (9.2%), Indika Energy (8.4%), and Merdeka Battery (6.7%).