Jakarta. The Indonesian Stock Exchange (IDX) had a sluggish week, with transaction values and volumes dropping over 5 percent and market capitalization declining nearly 1 percent.

According to Pilarmas Investindo Sekuritas, this downturn is partly due to uncertainty surrounding the reappointment of Finance Minister Sri Mulyani in President-elect Prabowo Subianto's upcoming administration, set to assume office in October.

Data for the period of July 15-19 shows an 8.23 percent decrease in the average daily transaction value, falling to Rp 9.6 trillion from Rp 10.46 trillion the previous week.

The average daily transaction frequency also declined by 8.12 percent, dropping to 1 million transactions from 1.09 million. Additionally, the average daily trading volume decreased by 5.3 percent, falling to 16.488 billion shares from 17.41 billion.

Market capitalization decreased by 0.96 percent, standing at Rp 12,358 trillion compared to Rp 12,478 trillion the week before. The Jakarta Composite Index (JCI) also corrected, declining by 0.45 percent to 7,294.4 from 7,327.5 at the previous week's close.

On Friday, July 19, foreign investors recorded a net buy of Rp 86.17 billion, reducing the net sell position for the year to Rp 2.78 trillion.

Pilarmas Investindo Sekuritas attributed the JCI's pressure to market uncertainty following President Joko Widodo's recent appointment of deputy ministers. They suggested that the market may interpret these appointments as indicative of potential changes in the Finance Ministry’s leadership.

“The recent appointments are viewed as part of the synchronization and transition preparation for the state budget,” Pilarmas noted in its research on Friday.

Meanwhile, Pilarmas observed a decline in Asian stock indices, reflecting a global market trend. Recent sentiment from the United States, considering stricter export controls on chips to China, has heightened market concerns.

In Japan, core inflation increased from 2.5 percent to 2.6 percent in June, signaling a possible interest rate hike by the Bank of Japan (BoJ) at its policy meeting on July 30-31.

“Market participants are also awaiting further details from China’s Third Plenary Session, particularly regarding policy direction for the next five years. President Xi Jinping emphasized utilizing market potential by lifting restrictions and implementing effective regulations to ensure market stability,” Pilarmas added.

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