JCI Closes Second Session Up 1.96% at 5,999

Jakarta, CNBC Indonesia - Investors in the domestic stock market breathed a sigh of relief today. After the Jakarta Composite Index (JCI) closed down 3.56% yesterday, the index surged today with all sectors in positive territory. The JCI initially opened in the red before accelerating to close 1.96% higher at 5,999.04 in the second trading session. A majority of stocks, 537 issuers, advanced, while 135 declined and 141 remained unchanged. Despite the significant rise, transaction value was relatively moderate at Rp 13.65 trillion, involving 22.58 billion shares in 1.70 million transactions. Market capitalisation remained below Rp 11,000 trillion, precisely at Rp 10,542 trillion. According to Refinitiv data, the JCI’s strengthening was broad-based, with all sectors in the green. The technology sector rose 3.56%, consumer non-cyclicals gained 3.08%, and the industrial sector was up 1.76%. In terms of index contributors, large-cap stocks were the main drivers of the rally. PT Mora Telematika Indonesia Tbk (MORA) was the largest contributor with 19.73 points to the JCI. It was followed by PT Astra International Tbk (ASII) with 11.17 points, PT Bank Central Asia Tbk (BBCA) with 9.37 points, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) with 6.27 points, and PT Merdeka Copper and Gold Tbk (MDKA) with 4.72 points. Support also came from DSSA, BRPT, AMRT, BMRI, and EMAS. Looking ahead to Thursday’s trading, JCI movement is expected to remain influenced by sentiment from MSCI’s decision to maintain Indonesia’s classification as an Emerging Market. The decision eased market concerns over potential massive foreign capital outflows had the status been downgraded to Frontier Market. However, MSCI still noted issues regarding share ownership transparency, alleged coordinated trading, and the effectiveness of capital market reform implementation, which will be re-evaluated in November 2026. Domestically, the Financial Services Authority (OJK) and the government view the MSCI decision as reflecting sustained global investor confidence in Indonesia’s financial market. OJK affirmed its commitment to continuing reforms to strengthen market integrity and transparency, while the government considers MSCI’s ongoing evaluation a normal process. Externally, investor attention is shifting to the release of US Personal Consumption Expenditures (PCE) inflation data, a key reference for the Federal Reserve’s interest rate policy. If PCE inflation shows another increase, expectations for higher-for-longer interest rates could strengthen, boosting the US dollar and Treasury yields, which may in turn pressure risk assets including the JCI and the rupiah. The market is also awaiting weekly US jobless claims data to gauge the health of the labour market. A combination of persistently high inflation and a solid labour market could reinforce the view that the Fed has no room to cut rates soon. Amid these sentiments, the US dollar index, which has breached the 101.609 level, continues to limit the rupiah’s and the domestic stock market’s potential for gains, amid increased pressure on capital flows to developing countries. According to Refinitiv data, the rupiah closed 0.50% weaker at Rp17,925 per US dollar on Wednesday, marking four consecutive days of decline.