Jakarta. The Jakarta Composite Index (JCI) dipped 0.88 percent, closing the week of Sept. 17-20 at 7,743.004, down from 7,812.131 the previous week. Market capitalization also declined by 2.85 percent to 13,007 trillion, compared to Rp 13,390 trillion the prior week.

Market sentiment throughout the week was influenced by Indonesia’s trade balance data and interest rate cuts by Bank Indonesia and the Federal Reserve. Indonesia posted a trade surplus of $2.9 billion for August, its 52nd consecutive month of surplus, up from $2.04 billion in July, according to the Central Statistics Agency.

Bank Indonesia surprised markets by cutting its benchmark rate by 25 basis points to 6 percent, anticipating the Fed’s rate cut, which materialized with a 50-basis-point reduction to 4.75 percent-5 percent.

Average daily trading volume surged by 15.3 percent to 28.07 billion shares, up from 23.35 billion shares the previous week. Similarly, the average daily trading frequency increased by 10.43 percent to 1.26 million transactions, from 1.14 million in the prior week.

Despite these increases, the average daily transaction value slipped slightly by 0.37 percent to Rp 14.93 trillion, down from Rp 14.98 trillion the week before.

Foreign investors posted a net buy of Rp 523.15 billion on Friday, contributing to a year-to-date net buy of Rp 56.11 trillion.

In the bond and sukuk markets, the Indonesia Stock Exchange (IDX) recorded 107 bond and Islamic bond (sukuk) issuances from 65 issuers in 2024, valued at Rp 90.79 trillion. 

Meanwhile, Wall Street ended a record-setting week on a quieter note Friday, with US stocks pulling back slightly. The S&P 500 slipped 0.2 percent, the Nasdaq fell 0.4 percent, and the Dow Jones Industrial Average gained 0.1 percent. This followed the Federal Reserve’s first interest rate cut in more than four years, with expectations of further cuts due to a slowing job market.

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