2025.10.2808:01:04UTC+00Indonesia Shares Extend Drops in Afternoon Trade

On Tuesday afternoon, Indonesia's IDX Composite experienced a decline of 49 points, or 0.6%, settling at 8,069, marking its second consecutive session of losses. Investor caution was prevalent due to the anticipated adjustments in MSCI’s free float index, which could lead to foreign capital outflows and impact corporate group stocks adversely. The market sentiment was further subdued by the anticipation of forthcoming data releases, particularly China's official Purchasing Managers' Index, Indonesia’s trade figures for September, and inflation data for October. Despite these concerns, the gains on Wall Street from Monday provided some support, driven by optimism surrounding potential further interest rate cuts by the Federal Reserve this week and the possibility of more easing in December. Additionally, China’s central bank reiterated its commitment to a supportive and moderately loose monetary policy. An upcoming meeting set for Thursday between Presidents Trump and Xi Jinping in South Korea is anticipated to alleviate trade tensions. Sectoral declines were led by producer manufacturing, process industries, and energy minerals, with significant losses seen in companies such as Unilever Indonesia (-7.4%), Astra International (-4.2%), Sumber Alfaria Trijaya (-3.3%), and Merdeka Copper Gold (-2.7%).