08.10.202602:46:00UTC+00Indonesian Shares Fall Further

Indonesian stocks fell 27 points, or 0.4%, to 6,121 in Thursday morning trade, extending earlier losses amid declines in infrastructure, basic materials, and financial shares. Investor caution persisted ahead of the release of September consumer confidence data later today, following an improvement in August.

In the U.S., equity futures were mixed after the S&P 500 retreated from its record high overnight as bond yields climbed to multidecade peaks. Meanwhile, markets in China, Indonesia’s main trading partner, resumed operations today after a recent holiday break.

On the domestic policy front, losses were partly limited by news that the government plans to raise the tax-free income threshold—the first such adjustment in a decade—to stimulate economic activity. At present, no income tax is levied on annual earnings of up to IDR 54 million.

In fresh data releases, September foreign exchange reserves were largely unchanged at about USD 146.3 billion, holding near a five-month high. Notable decliners included Sanurhasta Mitra (-5.5%), Sinergi Inti Andalan (-5.3%), Energi Mega Persada (-3.3%), and RMK Energy (-2.9%).