Indonesia Shares Sink to 7-Week Low

The stock market in Indonesia tumbled 97 points or 1.4% to near 7-week lows of 6,890 around midday on Tuesday, falling for the fourth session, pressured by a sharp pullback on Wall Street overnight following strong US data that suggested the Federal Reserve might stick longer with aggressive interest rate increases.

News about further contraction in the Chinese service economy also rattled sentiment, with uncertainties lingering about China reopening as daily COVID cases remained elevated.

Nearly all sectors moved in the red, falling between 1.1% for financials to 3.4% for technology.

Shares of GoTo, ride-hailing giant Gojek and e-commerce firm Tokopedia, plunged 6.5%, losing around 70% of its initial value of IDR 400 trillion (USD 28 billion) since its IPO in April, as major holders’ lock-up expires.

Other bottom movers were Telkom Indonesia (-6%), Astra Intl.

(-2.9%), Merdeka Copper (-2.9%), BNI Tbk (-1.8%), BCA Tbk (-1.7%), and Indofood CBP (-1.5%).