Market Summary:

• Global Equity: Strong earnings from big tech companies and prospect of AI monetization spending drives US index performance. S&P500 closed +0.71% WoW while Nasdaq closed +2.2% WoW.
• Domestic Equity: Potential MSCI methodology change hit index heavyweight and dragged JCI -1.3% WoW, The large cap LQ45 +0.42% driven by strong earnings from large caps. Foreign inflow was +333 USD Mn.
• Domestic Bond Market: Weakened to 6.01% (Prev: 5.99) as an effect of stronger dollar from Powell’s speech.

 

Key News of The Week:

• • Trump and Xi Jinping agreed on a 1-year truce on tariffs. The deal includes China promising to loosen rare earth exports and curb the flow of fentanyl to The US.
  • The Federal Reserve cut interest rates to 3.75-4%, in line with expectations. However, the announcement from J. Powell alarmed market by stating another cut this year is “far from certain”.
  • The Fed ended quantitative tightening measure in form of its balance sheet reduction.
  • JCI enters earnings season with a more upbeat view compared to 3Q, with large caps and consumer names giving in line or above-expectations results.
  • MSCI announced a consultation on calculations of Indonesian stock free float methodology as part of its index weighting. This would be active on May 2025.

 

Summary & Recommendation

We view 3Q25 earnings season as potential inflection point for foreign flow to return to Indonesian equities. With an attractive valuation compared to regional peers and better growth prospect, there is room for foreign inflow into equities. Nearing the end of the year, we expect to see social spending rollout from the government that will boost economic growth. However, we recommend holding 5-10% cash to manage volatility nearing near year-end profit taking.

 

Product recommendation: 

RD MITRA, RD ASEAN5, RD MISB, RD MIDU, RD MIDSYA, RD MMUSD, RD IDAMAN.

 

Discover a detailed analysis of this week’s market performance in our comprehensive Weekly Market Recap: Read More

 

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PRODUCT	3M PERFORMANCE	YTD PERFORMANCE
JCI	+9,08%	+15,31%
LQ45	+5,20%	+0,59%
EQUITY
MITRA A	+6,71%	+2,15%
MICB A	+4,71%	+0,49%
ASEAN5	+6,11%	-0,84%
MGSED	+6,78%	+13,22%
INDEX
FTSE ESG A	+5,60%	+3,59%
ETF
XMLF	+4,84%	+4,07%
BALANCED
MISB	+9,94%	+18,34%
MIA	+7,16%	+6,34%
FIXED INCOME
MIDU A	+2,51%	+8,32%
MIDO2	+3,70%	+9,04%
IDAMAN A	+2,37%	+6,26%
MONEY MARKET
MIPU A	+1,05%	+3,74%
MMUSD	+0,68%	+2,52%

*The data above is as of October 31st, 2025

 

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For More Information

Contact Mandiri Investasi – (021) 526 3505
Email Mandiri Investasi – [email protected]
Mandiri Investasi – www.mandiri-investasi.co.id

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DISCLAIMER‌
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The information and opinions expressed in this article are for general informational purposes only and are not intended as specific advice or recommendations for any individual, security, or investment product. The content is meant to provide education about the financial industry. Opinions and views presented may change without prior notice. All performance data and investment returns mentioned in this article should not be used as a guarantee or basis for decisions to buy or sell any securities. The data reflects historical performance and does not guarantee future results. Investing in mutual funds carries risks. Investors are advised to carefully read and understand the prospectus before making any investment decisions.

 

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