Jakarta. Indonesia's benchmark stock index briefly edged higher at Friday's open before quickly reversing course, slipping below the 6,100 level as weakness in global technology shares overshadowed optimism over strong foreign investment inflows.

Jakarta Composite Index (JCI) opened 4 points higher at 6,112 before falling to 6,090 within the first five minutes of trading.

Early trading saw 1.1 billion shares change hands with turnover reaching Rp 603 billion ($33.53 million) across more than 130,000 transactions. Advancers outnumbered decliners 195 to 227, while 251 stocks were unchanged.

Phintraco Sekuritas said Indonesia booked Rp 511.8 trillion in investment during the second quarter of 2026, up 7.1% year-on-year and equivalent to 25.1% of the government's full-year investment target. The brokerage said the figures reflected sustained long-term commitments from key partner countries, including China, Japan, and South Korea.

Domestic investment accounted for 49.6% of total investment, while foreign investment contributed 50.4%. Investment was also relatively evenly distributed between Java and regions outside the island.

Excluding the financial and oil and gas sectors, foreign direct investment (FDI) surged 27.4% year-on-year to a record Rp 257.7 trillion in the second quarter, accelerating from 8.5% growth in the previous quarter. Phintraco said it marked the strongest FDI growth since the fourth quarter of 2024.

The basic metals industry attracted the largest share of foreign investment, followed by other services and mining. Total FDI reached Rp 432.6 trillion in the first half of 2026, up 17.3% from a year earlier, with Singapore remaining Indonesia's largest foreign investor.

"The increase in FDI is a positive indication that economic growth likely remained solid in the second quarter of 2026. On the other hand, reliance on commodity-based investment remains a risk that needs to be anticipated," Phintraco Sekuritas said.

Kiwoom Sekuritas Indonesia said global market sentiment remained cautious as investors locked in profits from AI-related stocks despite robust semiconductor fundamentals.

Taiwan Semiconductor Manufacturing Co. (TSMC) reported a 77% jump in quarterly net profit to $22 billion, well above market expectations. "However, investors remain concerned about elevated valuations and the massive capital spending of AI companies. Market attention is now shifting to the earnings season of major technology companies such as Alphabet, Intel, Tesla, Microsoft, Meta, Amazon, Apple, and Qualcomm, which will determine whether the AI rally can be sustained," Kiwoom said.

On the macroeconomic front, US retail sales rose 0.2% month-on-month in June, matching market expectations, while initial jobless claims fell to 208,000, below the consensus estimate of 216,000, indicating resilient consumer spending and a still-solid labor market.

Global equities came under pressure overnight as losses in semiconductor companies and other AI-related stocks weighed on Wall Street. The S&P 500 fell 0.5%, the Dow Jones Industrial Average lost 105 points, or 0.2%, while the Nasdaq Composite dropped 1.5%.

Regional markets also traded lower on Friday morning. As of 8:59 a.m. Jakarta time, Japan's Nikkei had fallen 3.91%, South Korea's Kospi dropped 6.37%, Hong Kong's Hang Seng slipped 0.56%, and China's Shanghai Composite declined 1%.

Add as a preferred source on Google +