JCI Closes Lower at 6,971 Amid Uncertainty Over US-Iran Conflict
Jakarta (ANTARA) - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (BEI) closed lower on Tuesday afternoon, weighed down by uncertainty over the direction of the conflict between the United States (US) and Iran.
The JCI closed down 18.40 points or 0.26% at 6,971.03. Meanwhile, the LQ45 index of 45 leading stocks fell 6.10 points or 0.86% to 701.66.
“The JCI and Asian regional markets were pressured amid uncertainty surrounding the ongoing conflict in the Middle East, with market participants closely watching developments in the escalation between the United States (US) and Iran,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Tuesday.
From abroad, market participants are monitoring the potential for ceasefire negotiations between the US and Iran, amid market attention on the conflict and US President Donald Trump’s threat to open the Strait of Hormuz.
Although rhetoric has intensified, both sides are still discussing a framework for peace, with oil prices rising due to concerns over global supply. Additionally, this follows the emergence of a peace proposal initiated by international mediators.
Previously, the US and Iran, along with mediators, were reported to be discussing a potential 45-day ceasefire as part of a two-stage agreement that could lead to permanent peace.
However, the situation has changed, particularly regarding the deadline set by the US.
Iran seeks a total end to the war but continues to block the world’s oil distribution route, despite international pressure.
This has prompted threats from Trump, who stated he would cripple Iran’s power generation facilities and bridges if the agreement deadline is violated, disregarding any war crime labels for such actions.
Domestically, in addition to global pressures, the market is also shadowed by domestic pressures, with the rupiah touching Rp17,106 per US dollar.
The depreciation of the rupiah is an impact of the escalation in the Middle East region, which has effects from global geopolitical tensions and also the threat of US attacks on Iranian infrastructure facilities.
The uncertainty over the end of the Middle East conflict has an impact on domestic conditions, ultimately burdening the fiscal situation, raising fears of a potential widening of the state budget deficit.
Opening higher, the JCI moved into negative territory until the close of the first trading session. In the second session, the JCI remained in the red zone heading into the close of stock trading.
Based on the IDX-IC Sectoral Index, only three sectors strengthened, led by the infrastructure sector which rose 0.56%, followed by the financial sector and the energy sector, up 0.54% and 0.27% respectively.
Meanwhile, eight sectors corrected, with the industrial sector falling the most at minus 2.51%, followed by the transportation & logistics sector and the primary consumer goods sector, down 1.80% and 0.96% respectively.
The stocks that experienced the largest gains were PMJS, KUAS, ESIP, IFSH, and MEGA. Meanwhile, the stocks that saw the largest price declines were CHEM, KKGI, NSSS, FWCT, and FORE.
Stock trading frequency was recorded at 1,767,356 transactions, with 27.16 billion shares traded worth Rp13.48 trillion. A total of 250 stocks rose, 407 fell, and 158 remained unchanged.
Asian regional stock markets this afternoon included the Nikkei index strengthening 112.82 points or 0.21% to 53,526.50, the Hang Seng index weakening 177.50 points or 0.70% to 25,116.53, the Shanghai index strengthening 10.07 points or 0.26% to 3,890.16, while the Straits Times index weakened 14.39 points or 0.29% to 4,958.01.