JCI closes lower amid rising global uncertainty

Jakarta (ANTARA) – The Indonesia Stock Exchange’s (IDX) Jakarta Composite Index (JCI) closed lower on Monday, as rising global geopolitical and economic uncertainty weighed on the market.

The JCI fell 157.61 points, or 2.59%, to 6,936.15. The LQ45 index, which tracks 45 leading shares, dropped 10.77 points, or 1.79%, to 690.90.

“Negative sentiment stemmed from persistently high global uncertainty, Brent crude prices remaining above US$100 a barrel, concerns about potential capital outflows from Indonesia’s bond market, and various issues relating to MSCI,” Phintraco Sekuritas Head of Research Ratna Lim said in a market note in Jakarta on Monday.

Internationally, market participants were monitoring the outlook for the US Federal Reserve’s benchmark interest rate, US Treasury yields and geopolitical risks that have fuelled market volatility.

Domestically, pressure on the rupiah and the possibility of continued net foreign selling limited the JCI’s movement. The rupiah closed 0.08% weaker at Rp17,899 per US dollar.

The JCI opened higher but moved into negative territory by the close of the first trading session. It remained in the red throughout the second session and at the market close.

All 11 sectors in the IDX-IC sectoral indices fell. Energy recorded the steepest decline, down 5.88%, followed by industry, down 5.20%, and infrastructure, down 4.72%.

Trading frequency reached 1.85 million transactions, with 57.73 billion shares changing hands, worth Rp13.57 trillion. A total of 118 shares rose, 632 fell and 213 were unchanged.

Elsewhere in Asia, the Hang Seng Index rose 0.25% to 24,271.20, the Shanghai Composite gained 0.43% to 3,797.24, South Korea’s KOSPI fell 3.65% to 6,384.24, and Singapore’s Straits Times Index advanced 0.30% to 5,417.96.