JCI Closes Higher Amid Weakness in Most Asian Markets
The Indonesia Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed stronger on Tuesday afternoon amidst a decline in most Asian stock markets.
The JCI rose by 66.77 points or 1.01 per cent to 6,686.44. Meanwhile, the blue-chip group of 45 stocks, known as the LQ45 index, increased by 9.16 points or 1.40 per cent to 665.58.
“The JCI strengthened, supported by market sentiment following the stable position of foreign exchange reserves in August, which recorded US$46.5 billion, higher than the end of July position of US$145.3 billion,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Tuesday.
Domestically, Nico stated that improving sentiment was also supported by the resumption of operations at several airports that had been closed for two days due to eruptions from Mount Anak Krakatau.
“The resumption of activity at these airports will certainly reactivate the economic wheels of the logistics sector, supply chain, and the recovery of mobility and business connectivity,” said Nico.
Regarding the Asian region, Nico noted that rising geopolitical tensions between the United States and Iran have caused concern among market participants, driving up crude oil futures due to fears of deeper disruptions to energy flows through the Strait of Hormuz.
On the other hand, market participants are awaiting details of the agreement between Iran and Oman to regulate shipments through the Strait of Hormues. Previously, Iran stated that the agreement with Oman to regulate shipments through the Strait of Hormuz was nearly finalised, triggering concerns over increased Tehran’s control over this major waterway.
“The market is increasingly anticipating a potentially prolonged Middle East conflict, leading to fears that higher energy costs could trigger inflation and delay global interest rate cuts,” said Nico.
From China, the trade surplus was recorded at US$119.1 billion in August, higher than the previous month’s US$112.5 billion, with exports surging 25.0 per cent year-on-year to US$401.44 billion, while imports jumped 28.2 per cent year-on-year to US$282.36 billion.
Opening stronger, the JCI remained in positive territory until the close of the first trading session. In the second session, the JCI remained in the green zone until the close of trading.
Based on the IDX-IC sectoral index, eight sectors strengthened, led by the basic materials sector which rose by 1.94 per cent, followed by the consumer staples and industrial sectors, which rose by 1.56 per cent and 1.17 per cent respectively.
Meanwhile, three sectors weakened, with the healthcare sector falling the most at 0.67 per cent, followed by the technology and consumer non-staples sectors, which fell by 0.58 per cent and 0.06 per cent respectively.
As for the stocks that experienced the largest price increases, they were POLA, ASPI, SHID, SOHO, and PPRI. Meanwhile, the stocks that experienced the largest price declines were FPNI, NZIA, OMED, UDNG, and LUCY.
Trading frequency was recorded at 2,265,000 transactions, with a total of 35.15 billion shares traded worth Rp15.70 trillion. A total of 388 stocks rose, 253 stocks declined, and 322 stocks remained unchanged.
Regional Asian stock indices this afternoon included the Nikkei index falling 1.69 per cent to 65,278.00, the Shanghai index rising 0.20 per cent to 3,940.55, the Hang Seng index falling 0.38 per cent to 25,317.18, the Kospi index falling 0.58 per cent to 6,954.52, and the Straits Times index falling 0.144 per cent to 5,764.37.