Indonesia's Stock Bourse Rebounds Sharply After Two-Day Decline

Indonesia’s primary equities market staged a notable recovery on Monday, reversing a two-session downtrend that had erased roughly 110 points from its valuation. The Jakarta Composite Index climbed 106.34 points or 1.25 percent to settle at 8,644.26, moving just below the 8,650-level after oscillating between 8,545.72 and 8,652.18 during the session.

Strength emerged across multiple sectors, with financial institutions, commodities producers, and telecommunications companies leading the advance. Bank CIMB Niaga gained 0.29 percent, while Bank Mandiri and Vale Indonesia each posted 0.50 percent increases. Bank Negara Indonesia retreated 0.23 percent, though Bank Rakyat Indonesia rallied 0.27 percent. Telecommunications saw particularly robust activity, with Indosat Ooredoo Hutchison surging 1.67 percent. Among materials stocks, Energi Mega Persada delivered the day’s most impressive performance with a 5.15 percent jump, while Aneka Tambang advanced 2.48 percent and Bumi Resources climbed 1.10 percent. Astra International rose 0.75 percent and Astra Agro Lestari gained 0.34 percent.

Weakness persisted in select names, including Semen Indonesia’s 1.87 percent decline, Indocement’s 0.36 percent loss, and Indofood Sukses Makmur’s 0.37 percent pullback. Timah shed 0.62 percent while United Tractors eased 0.17 percent. Bank Danamon Indonesia and Bank Central Asia showed no movement.

The bourse’s recovery contrasts sharply with deteriorating sentiment elsewhere. Western equity markets contracted on Monday as investors engaged in year-end profit-taking. The Dow Jones Industrial Average fell 249.04 points or 0.49 percent to 48,461.93, while the NASDAQ Composite declined 118.75 points or 0.50 percent to 23,474.35. The S&P 500 surrendered 24.20 points or 0.35 percent to finish at 6,905.74. Technology sector heavyweights including Nvidia and Oracle experienced particularly sharp declines.

Energy commodities benefited from geopolitical tensions and supply concerns, propelling crude prices higher. West Texas Intermediate futures for February delivery climbed $1.25 or 2.20 percent to $57.99 per barrel, buoyed by escalating Russia-Ukraine military operations, intensifying U.S.-Venezuelan tensions, and emerging conflicts across the Middle Eastern region.

Economic data from the United States showed housing activity outpacing expectations, with pending home sales registering stronger-than-forecast gains in November. The broader outlook for Asian equities remains cautious heading into year-end, with analysts anticipating consolidation patterns given the prevailing profit-taking environment across global bourses.