JCI drops 4.5 per cent, pressured by combination of domestic and global sentiments

The Indonesia Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed weaker on Monday afternoon, pressured by a combination of negative domestic and global sentiments. The JCI fell by 252.63 points, or 4.52 per cent, to the 5,342.14 level. Meanwhile, the LQ45 index, comprising 45 blue-chip stocks, dropped 30.67 points, or 5.50 per cent, to 527.08.

“Selling pressure continues due to negative factors from both global and domestic fronts,” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her analysis in Jakarta on Monday. Ratna explained that amidst domestic sentiment caused by a loss of investor confidence, global sentiment was also impacted by the attacks between Iran and Israel, which threaten a fragile ceasefire.

This geopolitical sentiment caused crude oil prices to rise by more than four per cent, increasing the risk of sustained inflation and a potential widening of the 2026 State Budget deficit. Furthermore, rising geopolitical tensions have bolstered market expectations that the US Federal Reserve will maintain a hawkish stance throughout the remainder of the year.

Concurrently, Asian stock markets also weakened following Wall Street, due to negative factors from heightened tensions in the Middle East and corrections in the technology sector. “Technically, the potential for further decline in the JCI remains open. Moving forward, the JCI is expected to potentially test the 5,100 level,” Ratna noted.

After opening lower, the JCI remained in negative territory through the close of the first trading session and stayed in the red until the market close. Based on the IDX-IC Sectoral Index, all eleven sectors weakened, with the infrastructure sector seeing the deepest decline at 6.47 per cent, followed by the industrial sector and the transport & logistics sector, which fell by 6.00 per cent and 5.43 per cent, respectively.

Regarding individual stocks, the largest gains were seen in GRIA, FORU, ASPR, TPIA, and PSDN, while the largest declines were recorded in ENAK, PTSN, GPSO, TNCA, and ANJT. Trading frequency was recorded at 2,215,560 transactions, with 32.52 billion shares traded worth Rp21.74 trillion. A total of 78 stocks rose, 661 declined, and 771 remained unchanged.

Regional Asian markets also closed lower this afternoon, with the Nikkei falling 2,492.12 points or 3.74 per cent to 64,096.00, the Shanghai Index dropping 68.40 or 1.70 per cent to 3,959.34, the Hang Seng losing 304.89 points or 1.22 per cent to 24,657.06, and the Straits Times declining 83.49 points or 1.65 per cent to 4,963.67.