JCI Closes 1.70% Lower at 5,839.78 on Thursday Afternoon

The Indonesia Composite Index (JCI) closed lower on Thursday afternoon, falling 101.28 points or 1.70 per cent to the level of 5,839.78. Throughout the trading session, the JCI plummeted to a daily low of 5,644 before recovering some losses towards the close.

The Head of Research at Phintraco Sekuritas noted that the index’s decline was driven by widespread rumours in the domestic market amidst high uncertainty and low investor confidence. Additionally, the weakening Rupiah, which closed down approximately 0.46 per cent at Rp18,049 per US dollar, further weighed on market sentiment.

Across Asia, most stock indices also trended downwards due to escalating tensions between the US and Iran, which pushed oil prices higher and sparked fears of rising global inflation. Technical analysis indicates that the widening negative histogram of the Moving Average Convergence Divergence (MACD) and the formation of a death cross pattern on the Stochastic RSI suggest that selling pressure remains strong. While the JCI managed to move away from its intraday low, the index is expected to remain volatile with a downward bias, potentially testing support levels in the 5,700-5,800 range.

Capital market observer Elandry Pratama attributed the decline to a combination of simultaneous negative sentiments. He noted that the Rupiah’s depreciation to the Rp18,000 level coincided with continued foreign capital outflows from both the stock and government bond markets. Furthermore, the market was negatively impacted by Moody’s outlook regarding Danantara.

Externally, rising geopolitical tensions in the Middle East and the recent tariff policies of US President Donald Trump pose potential risks to several Indonesian export sectors. These negative sentiments were compounded by technical factors such as panic selling and margin call effects, deepening the JCI’s decline. According to the IDX-IC Sectoral Index, all eleven sectors closed in the red, with the industrial sector experiencing the sharpest decline at 4.07 per cent, followed by the property sector at 3.28 per cent and the consumer staples sector at 2.36 per cent. Trading frequency was recorded at 2.29 million transactions, with a trading volume of 39.68 billion shares valued at Rp25.53 trillion. During the session, 106 stocks gained, 623 stocks declined, and 85 stocks remained unchanged.