JCI Corrects, Foreign Funds Exit Rp 3.8 Trillion as Oil Prices Surge

JAKARTA, KOMPAS.com - The Composite Stock Price Index (JCI) recorded a slight correction of 0.14% last week, which only spanned three trading days following the long Eid al-Fitr holiday. The relatively limited movement of the index occurred amid significant selling pressure from foreign investors. According to the Indonesia Stock Exchange (BEI), the foreign fund outflow reached Rp 3.8 trillion. This condition indicates that global sentiment remains the dominant factor in determining the direction of the domestic stock market. Geopolitical tensions between the United States and Iran, which are still in a deadlock, have also triggered global concerns, particularly regarding potential disruptions to energy supplies in the Strait of Hormuz. This situation has driven crude oil prices up to above $100 per barrel. According to analysts, this increase is driven by shifts in global consumption, where countries like Japan are starting to switch to coal as a more stable domestic energy alternative. In the agriculture sector, positive sentiment accompanies Malaysian CPO prices holding steady at MYR 4,600 per tonne, supported by a surge in exports and growing appeal of biofuel amid the rally in crude oil prices. On the domestic side, the acceleration of Indonesia’s B50 programme serves as a strong catalyst for this sector. However, the market continues to monitor risks of declining demand from India and slowing economic data from China, which could affect the outlook for these commodities going forward. In addition, other export-based issuers benefit from the weakening Rupiah, which enhances their competitiveness in international markets. Overall, the market is currently in a wait-and-see phase, with the main focus on developments in geopolitical negotiations and the direction of global energy prices. As long as the deadlock between the United States and Iran has not reached a resolution, volatility is expected to remain high. Thus, JCI movements are likely to trend sideways in the range of 6,745-7,323.