Indonesian stock market rises 20% from June low, expected to enter technical bull market
Indonesian stocks rose, with the benchmark index on track to enter a technical bull run, as the confirmation of a sovereign rating boosted sentiment, while continued tech optimism fueled a rebound in regional markets. The Jakarta Composite Index rose 1.2% to 6,412.35 points in early trading on Thursday, a cumulative increase of 20% since the low in early June. PT Bumi Resources and PT Bank Rakyat Indonesia Persero led the index higher. Market sentiment in the world's worst-performing stock market this year is improving, with falling oil prices, Indonesia's central bank raising interest rates by 50 basis points in June and S&P's decision to maintain the country's rating and outlook, all helping to stabilize the market. Despite the rebound, Indonesia's benchmark index is still down about 26% this year on concerns about market transparency and policy direction. Indonesian President Prabowo Prabowo's economic agenda continues. MSCI and S&P Index companies still need to make a final judgment on Indonesian market conditions in November.