30.01.202603:33:21UTC+00Indonesia Equities Rebound After Rout, Monthly Decline Still Looms

In early Friday trading, Indonesia's IDX Composite surged by 139 points, marking a 1.7% increase to reach 8,372, recovering from two prior sessions of significant downturns. This rebound followed MSCI's expression of concerns regarding ownership concentration and trading transparency, which posed a threat of downgrading the market to frontier status. Market sentiment improved as regulators announced plans to raise the minimum public shareholding requirement for listed companies from 7.5% to 15%, with a long-term target of 25%. The gains were widespread, with significant advances in transport, energy, and property sectors. Leading banks such as Bank Central Asia and Bank Mandiri saw increases of 3.1% and 2.4% respectively, while notable performers included Bukit Uluwatu Villa, up by 7.3%, and Telkom Indonesia with a 5.5% rise. Nonetheless, the potential gains were tempered by a substantial decline in U.S. stock futures following Apple's warnings about margin pressures, coupled with investor caution ahead of President Trump's upcoming announcement of his nominee for Federal Reserve chair later today. Consequently, Indonesian equities seem poised for a second consecutive weekly decline and their first monthly loss in seven months.