Jakarta. Jakarta Composite Index (JCI) extended its rally into a fourth consecutive session on Monday, rising 18 points, or 0.28%, to 6,544 in early trading as investors weighed Indonesia’s widening current account deficit against improving capital inflows and a stronger close on Wall Street.

The benchmark index traded between 6,535 and 6,551 in the opening minutes. Around 973.7 million shares changed hands, with a transaction value of Rp 446.97 billion ($25.26 million) across 79,626 trades, according to RTI data. A total of 309 stocks gained, 127 declined, and 250 were unchanged.

On the domestic front, Kiwoom Sekuritas Indonesia expects Indonesia’s current account deficit (CAD) to widen to between 2.5% and 3.0% of gross domestic product (GDP) in 2026, from 0.11% in 2025.

The CAD reached $12.5 billion, or 3.3% of GDP, in the second quarter of 2026, sharply widening from $3.6 billion, or 1.0% of GDP, in the previous quarter.

Kiwoom said the wider deficit would likely be driven by stronger imports under the government's pro-growth agenda, while exports could face pressure from weak global demand, particularly from China, as well as geopolitical and trade tensions. The situation could weigh on Indonesia's external position and the rupiah if strong capital inflows fail to offset the pressure.

Meanwhile, the capital and financial account swung to a $12 billion surplus in the second quarter from a $4.8 billion deficit in the previous quarter, supported by higher direct and portfolio investment.

“However, capital flows remain vulnerable to rising global uncertainty and risk-off sentiment, so the combination of a widening current account deficit and reliance on capital flows poses a risk to Indonesia's balance of payments,” Kiwoom said.

Global markets also provided a mixed backdrop. Wall Street closed higher on Friday, ending a week-long slide after US economic data showed business activity expanding at its fastest pace in more than four years. The S&P 500 and Nasdaq 100 each rose 0.43%, while the Dow Jones gained 0.98%.

“The gains at the end of last week were supported by advances in financial, healthcare, and basic materials stocks,” Phintraco Sekuritas said in a Monday research note.

However, US Treasury yields continued to climb, with the 10-year yield rising 3 basis points to 4.736% and the 30-year yield gaining more than 3 basis points to 5.273%.

Phintraco also noted that spot gold jumped 2.3% to $4,619 per troy ounce on Friday, supported by technical factors and a weaker US dollar. Brent crude, meanwhile, remained stable at around $94 per barrel amid indications that Iran was seeking to end its conflict with the United States.

Trade tensions also remained in focus after the United States imposed a 50% tariff on Canadian products on Saturday. Canada is set to begin retaliatory tariffs on Sept. 8 after negotiations between the two countries failed.

Phintraco said investors would closely watch global interest rate prospects and long-term government bond yields amid elevated energy prices, widening budget deficits, and increased corporate debt issuance.

“Investors will also closely monitor the Jackson Hole Symposium, particularly for signals on the Fed’s monetary policy outlook and its views on the recent rise in US government bond yields,” Phintraco said.

Wall Street ended Friday higher, snapping a week-long losing streak after US data showed business activity expanded at its fastest pace in more than four years. The S&P 500 and Nasdaq 100 each gained 0.43%, while the Dow Jones rose 0.98%.

Add as a preferred source on Google +