JCI Opens Weak on Monday, Following Asian Regional Markets
Overall, the resilience of domestic demand remains the primary support amid external pressures. The JCI has the potential for limited strengthening today.
Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) moved lower on Monday morning, following the weakening of stock markets in the Asian region.
The JCI opened down 48.41 points or 0.65% to 7,410.09. Meanwhile, the LQ45 Index, comprising 45 leading stocks, fell 5.28 points or 0.71% to 741.19.
“Overall, the resilience of domestic demand continues to be the main pillar amid external pressures. The JCI has the potential to strengthen modestly today,” stated the Lotus Andalan Sekuritas Research Team in its analysis in Jakarta on Monday.
From abroad, on the geopolitical front, negotiations between the United States (US) and Iran over the weekend in Islamabad, Pakistan, failed to reach an agreement, thus endangering the two-week ceasefire that is already fragile.
On the macro side, US inflation data recorded 0.9% month-to-month (mtm) and 3.3% year-on-year (yoy) due to a surge in energy prices, potentially placing the Fed in a dilemma between maintaining price stability or supporting growth, especially if oil prices remain high in the coming months.
In the Asian region, China’s solid economic performance is poised to support the global demand outlook, particularly for commodity-exporting countries like Indonesia.
Conversely, disappointing data could trigger risk-off sentiment and continued pressure on risky assets.
Domestically, market participants are awaiting the release of consumption and real sector indicators by Bank Indonesia (BI), such as the Retail Sales Survey, External Debt Statistics (ULN), Bank Indonesia’s Prompt Manufacturing Index (PMI), and the Business Activity Survey (SKDU).
Post-Ramadan consumption data will be key to assessing the sustainability of purchasing power, while ULN stability will serve as an important indicator for perceptions of external risk and capital flow directions.
On Friday (10/04) last week, European stock markets closed mixed, including the Euro Stoxx 50 up 0.65%, the UK’s FTSE 100 down 0.03%, Germany’s DAX down 0.01%, and France’s CAC 40 up 0.17%.
The US Wall Street markets also closed mixed on Friday (10/04), with the Dow Jones Industrial Average down 0.56% to 47,916.57, the S&P 500 down 0.11% to 6,816.89, and the Nasdaq Composite up 0.14% to 25,116.34.
Regional Asian stock markets this morning included the Nikkei down 498.61 points or 0.88% to 56,425.50, the Shanghai Index down 9.28 points or 0.23% to 3,976.95, the Hang Seng down 299.04 points or 1.15% to 25,594.50, and the Straits Times down 13.66 points or 0.27% to 4,975.75.