The Indonesian stock market experienced a significant drop, triggering a trading halt due to heightened concerns over the macroeconomic environment and weak consumer spending ahead of the Eid al-Fitr holiday. The Jakarta Composite Index is on track for its fourth consecutive decline, with major contributors to the downturn being DCI Indonesia, Barito Renewables, and Chandra Asri Pacific.
DCI Indonesia saw its shares fall by 20% for the third consecutive day, hitting the lower limit. Chandra Asri Pacific's stock price plunged over 19% after reporting a 17.4% year-over-year decline in net revenue for the fiscal year 2024, amounting to $1.8 billion.
Portfolio manager Nigel Peh from Timefolio Asset Management highlighted concerns about consumer companies and weak sales as the Eid holiday approaches. Many locals have reduced discretionary spending, affecting various sectors from banks to major companies like Barito and Chandra Asri Pacific, leading to significant capital outflows. The market is also under pressure from deflation and weak household spending data.
