JCI Closes with 4.42% Surge, US-Iran Peace Sentiment Boosts Investor Optimism
The Composite Stock Price Index (JCI) closed trading on Wednesday afternoon with a sharp surge, driven by a wave of investor optimism following the easing of geopolitical tensions between the United States and Iran.
At the close of trading, the JCI soared 308.18 points or 4.42% to the level of 7,279.21. Meanwhile, the LQ45 index, comprising blue-chip stocks, also strengthened by 31.96 points or 4.55% to 733.62.
Capital market analyst and Founder of Republik Investor, Hendra Wardana, assessed that the strong rally in the domestic stock market cannot be separated from the drastic short-term change in global sentiment after the US-Iran tensions eased.
According to him, US President Donald Trump’s decision to postpone the attack plan for two weeks, followed by Iran’s move to reopen the strategic Strait of Hormuz route, was immediately interpreted by the market as a signal of declining global risk.
The easing of threats to energy supply disruptions has also subsided investor concerns. Commodity price stability has been maintained, thereby sharply increasing buying interest in risky assets, including stocks in emerging markets like Indonesia.
“The significant surge in the JCI is inseparable from the emergence of short-term positive global sentiment, particularly news of the easing geopolitical tensions between the US and Iran,” said Hendra to Media Indonesia on Wednesday (8/4).
He explained that the market is highly sensitive to geopolitical issues, especially those concerning global oil distribution routes like the Strait of Hormuz. When conflict risks decrease, global investors tend to return to risky assets or adopt a risk-on strategy.
That condition, he said, became the main driver for all sectors on the exchange to move in the green zone, with commodity- and energy-based stocks performing as the main engines of the strengthening.
Nevertheless, Hendra warned that this sharp rally is not necessarily an indicator of a solid upward trend. He assessed that the market remains vulnerable to changes in sentiment direction, especially because Trump’s policies and communications often shift abruptly in short periods.
Sudden statements, according to him, could reignite volatility in the global market. Therefore, the current strengthening is more appropriately viewed as a technical rebound rather than the start of a solid long-term rally.
He advised investors to remain selective and disciplined. The rebound momentum can still be utilised for short-term trading, but it must be accompanied by strict risk management to avoid getting caught in momentary euphoria.
“Excessive euphoria risks causing investors to enter at peak prices, especially amid market conditions that are still heavily influenced by fluctuating global sentiment,” said Hendra.
Throughout the day, the JCI moved comfortably in the green zone. After opening stronger, the index held in positive territory until the end of the first session and continued its strengthening until the close of trading.
Based on the IDX-IC Sectoral Index, all 11 sectors ended higher. The basic materials sector led with a 8.86% increase, followed by the infrastructure sector at 5.85% and the industrial sector at 5.63%.
Stocks recording the largest gains included FWCT, KUAS, RMKO, ROCK, and SOTS. Meanwhile, the stocks with the deepest corrections were GSMF, ESIP, CBPE, PTSP, and WIDI.
Trading activity was also observed to be brisk. Transaction frequency reached 2,429,228 times, with a trading volume of 43 billion shares and a transaction value of Rp22.62 trillion. A total of 623 stocks rose, 101 fell, and 95 were stagnant.
The strengthening of the domestic market aligned with Asian regional exchanges. As of this afternoon, the Nikkei index surged 2,897.94 points or 5.42% to 56,327.50, Shanghai rose 104.83 points or 2.63% to 3,995.00, Hang Seng added 776.49 points or 3.09% to 25,893.02, and the Straits Times strengthened 47.22 points or 0.94% to 5,004.73.