JCI Falls 1.70 Percent to 5,839.78
The Jakarta Composite Index (JCI) closed down 101.28 points, or 1.70 per cent, at 5,839.78 in Thursday afternoon trading. Throughout the session, the JCI had plunged to an intraday low of 5,644 before paring some of its losses towards the close.
Phintraco Sekuritas Head of Research assessed that the index’s decline occurred amid a flurry of rumours in the domestic market, against a backdrop of high uncertainty and low investor confidence. “Selling pressure continued from the previous trading day due to the proliferation of various rumours in the domestic market amidst high uncertainty and low investor confidence,” they stated in Jakarta on Thursday.
Furthermore, the rupiah’s weakness, closing down approximately 0.46 per cent at Rp18,049 per US dollar, also weighed on market sentiment. In the Asian region, most stock indices also moved lower due to escalating tensions between the US and Iran, which spurred a rise in oil prices and triggered concerns over a potential increase in global inflation.
Based on technical analysis, the widening negative histogram of the Moving Average Convergence Divergence (MACD) and the formation of a death cross pattern on the Stochastic RSI indicate that selling pressure remains quite strong. Although the JCI managed to move away from its intraday low, the index’s movement is expected to remain volatile with a weakening tendency and the potential to test the support area in the 5,700-5,800 range.
Capital market observer Elandry Pratama assessed that the JCI’s decline was triggered by a combination of negative sentiments occurring simultaneously. According to him, the rupiah’s depreciation to the Rp18,000 per US dollar level coincided with the continued outflow of foreign funds from both the stock market and government bonds. “At the same time, the market also received negative sentiment from Moody’s outlook on Danantara,” he said.
Externally, geopolitical tensions in the Middle East escalated anew, while President Donald Trump’s latest tariff policy threatens to pressure several Indonesian export sectors. “The combination of these various negative sentiments was then exacerbated by technical factors such as panic selling and margin call effects, so that selling action became greater and caused the JCI’s decline to deepen in today’s trading,” he explained.
Based on the IDX-IC Sectoral Indices, all eleven sectors closed in the red. The deepest decline was experienced by the industrial sector, which fell 4.07 per cent, followed by the property sector at 3.28 per cent and the primary consumer goods sector at 2.36 per cent.
Share trading frequency was recorded at 2.29 million transactions with trading volume reaching 39.68 billion shares worth Rp25.53 trillion. A total of 106 stocks rose, 623 stocks fell, and 85 stocks remained unchanged.