Jakarta. The Indonesia Stock Exchange (IDX) experienced a sharp decline in market capitalization, falling 1.02 percent to Rp 12,875 trillion over the past week, down from Rp 13,007 trillion in the previous week. The Jakarta Composite Index (JCI) dropped 0.6 percent, closing at 7,696.916 compared to 7,743.004 last week.

According to data from Sept. 23–27, 2024, the average daily trading value on the IDX rose 9.64 percent to Rp 16.36 trillion from Rp 14.92 trillion the week prior, indicating increased market activity despite the decline in index performance.

Contributing to this volatility, China's central bank announced a major stimulus package on Sept. 24, which includes lowering borrowing costs, easing household mortgage payments, and reducing the bank reserve requirement ratio by 50 basis points. The package sparked a surge in mining commodity prices, particularly copper and lithium, while Chinese stocks like Alibaba soared nearly 8 percent. This led to foreign investors selling a net worth of Rp 2.53 trillion as of Thursday, signaling possible capital outflows to China.

Meanwhile, US stocks closed the week with mixed results. The S&P 500 edged down 0.1 percent, the Dow Jones Industrial Average rose by 137 points or 0.3 percent, and the Nasdaq composite slipped 0.4 percent. Despite concerns over inflation, hopes remain that the US economy can avoid a recession as the Federal Reserve prepares for potential further rate cuts in November. 

Traders are betting on a 55 percent probability the Fed will cut the federal funds rate by another half of a percentage point at its next meeting in November, according to data from CME Group. It usually moves rates by just a quarter of a percentage point.

Analysts at NH Korindo Sekuritas Indonesia pointed out that despite global market pressures, the Indonesian Rupiah remains stable at Rp 15,160 against the US dollar, helping maintain positive market momentum. The attractive rotation into metal commodities also continues to bolster investor confidence in the Indonesian market.

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