JCI closed weaker on Wednesday despite strengthening Rupiah

The Indonesia Composite Index (JCI) of the Indonesia Stock Exchange (IDX) closed weaker by 0.83 per cent, or 50.64 points, to the level of 6,071.14 from its previous position of 6,121.78 on Wednesday.

The JCI experienced this decline despite the strengthening of the Rupiah and a correction in global oil prices.

Ratna Lim, Head of Research at Phintraco Sekuritas, stated in her analysis in Jakarta on Wednesday that the JCI’s decline occurred amidst a 0.33 per cent appreciation of the Rupiah to Rp17,884 per US dollar, following a decline in the US Dollar Index.

On the other hand, Brent crude oil prices continued to correct below the US$96 per barrel level, supported by indications of improving crude oil flows from the Middle East and steps taken by the United States to release emergency reserves, which eased supply concerns.

“The average crude oil exports from the Middle East over the last 10 days have recovered to the level of 17.5 million barrels per day, or equivalent to 98 per cent of pre-war levels,” said Ratna.

According to her, technically, the Moving Average Convergence Divergence (MACD) histogram remains in the negative area, while the Stochastic Relative Strength Index (RSI) is still in the oversold area.

Under these conditions, the JCI is expected to continue moving in a consolidative manner within the 6,000-6,200 range during Thursday’s trading.

Based on the IDX-IC sectoral index, only two out of 11 sectors strengthened during Wednesday’s trading. The industrial sector led the gains with an increase of 1.17 per cent, followed by the consumer staples sector which rose by 0.15 per cent. Meanwhile, the other nine sectors closed weaker.

Stock trading frequency was recorded at 1.8 million transactions, with the total number of shares traded reaching 30.12 billion shares valued at Rp14.03 trillion. A total of 308 stocks rose, 360 stocks declined, and 125 stocks remained stagnant.