JCI Falls 2.42% in First Session as Investor Risk Appetite Remains Limited

The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) closed lower in the first trading session on Tuesday (30/05), weakening amid still limited risk appetite from investors. The JCI closed down 141.04 points, or 2.42 percent, at 5,679.75. Meanwhile, the LQ45 index of 45 leading stocks fell 13.72 points, or 2.39 percent, to 559.29.

"Today’s JCI decline is predominantly driven by domestic sentiment, particularly the still limited risk appetite of investors," said Capital Market Analyst Elandry Pratama when contacted by Antara in Jakarta on Tuesday. Elandry explained that the limited risk appetite is reflected in the continued net foreign sell, which was still recorded at IDR 854.10 billion in trading on Monday (29/06). "Additionally, Indonesia’s weight in the MSCI Emerging Market Index is currently only around 0.46 percent, making the passive flow into the domestic market more limited," Elandry said.

Elandry stated that investors currently tend to adopt a wait-and-see stance while observing domestic policy developments and the direction of foreign fund flows. "Amidst the volatility, investors are also more selective and focused on stocks with strong fundamentals," Elandry said. He projected that the JCI still has the potential to move volatilely in the near term; however, historically, July tends to be a positive period for the JCI. "Thus, the opportunity for strengthening remains open if market sentiment and capital flow begin to improve," Elandry said.

Closing data for the first session on Tuesday (30/05) showed that share trading frequency was recorded at 887,700 transactions, with 10.14 billion shares traded worth IDR 7.50 trillion. A total of 103 stocks rose, 618 stocks fell, and 238 were unchanged. Based on the IDX-IC Sectoral Indices, all eleven sectors weakened, with the basic materials sector falling the deepest by 4.31 percent, followed by the energy and industrial sectors, which fell by 3.32 percent and 2.68 percent respectively.