Basic materials, energy and healthcare led advances as investors welcomed a court ruling on free-meal funding but stayed cautious ahead of inflation, trade and Q2 GDP data next week.
Indonesian stocks climbed 42 points, or 0.7%, to 6,227 in early Friday trading, building on earlier gains after an overnight rebound on Wall Street helped steady risk appetite, particularly as chipmakers recovered from recent weakness. Domestic sentiment was also supported by the constitutional court’s ruling that financing for free meals should not come from the education budget, a decision seen as reinforcing governance reforms tied to President Prabowo’s flagship program. Still, the advance was tempered by caution ahead of next week’s releases on inflation, trade performance and Q2 GDP, while concerns over China’s outlook lingered after signs Beijing will rely on existing policy tools rather than broad new stimulus. Gains were broad-based, with basic materials, energy and healthcare leading the market. Notable movers included Surya Citra Media, up 5.1%, Darma Henwa, up 4.4%, and Astra Intl, up 2.5%. The market is on course for a fourth straight weekly rise and its first monthly gain after six consecutive monthly declines.