Indonesia’s IDX Composite rises as Q2 GDP beats forecasts

Jakarta shares extended gains into a third session after Indonesia reported 5.29% second-quarter growth above forecasts, with July foreign inflows helping offset caution before forex reserves and China trade data.

19d ago

Summary

Indonesia’s IDX Composite rose in consecutive sessions, advancing 33 points, or 0.5%, to 6,351 in Wednesday morning trade ahead of GDP data and then 19 points, or 0.3%, to 6,371 in early Thursday trading after second-quarter growth came in at 5.29% year over year, above forecasts but below the first quarter’s 5.61%. Sentiment was supported by softer July inflation, clearer rules allowing shipments of nickel, tin and other commodities containing trace elements to resume, and July foreign net purchases of IDR 1.62 trillion after months of outflows. Gains were tempered by caution ahead of July foreign exchange reserves data and China trade figures.

Terms & Concepts

Foreign exchange reserves: Central bank-held foreign currency assets that investors watch for signals on external stability and currency conditions.
Net foreign purchases: The value of shares bought by overseas investors minus shares sold over a period, used as a gauge of foreign capital flows.
Year-over-year GDP growth: The change in gross domestic product compared with the same quarter a year earlier, a standard measure of economic momentum.