JCI Potentially Volatile Amid "Wait and See" Stance on Fed Meeting

Kiwoom Research continues to remind investors to prepare for the possibility of closing the gap at 7,022 or further consolidation to the 7,000-6,917 levels. Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) on Tuesday is potentially moving volatile amid market participants adopting a wait-and-see attitude towards the US Federal Reserve meeting. The JCI opened stronger by 21.95 points or 0.31 percent to 7,128.47. Meanwhile, the group of 45 leading stocks or LQ45 Index rose 1.76 points or 0.26 percent to 688.50. “Kiwoom Research still has to remind investors to prepare for the possibility of closing the gap at 7,022 or further consolidation to the 7,000-6,917 levels,” said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Tuesday. From abroad, the diplomatic deadlock between the US and Iran remains the main driver. US President Donald Trump cancelled negotiations and asserted that the US “holds all the cards”, while Iran offered to open the Strait of Hormuz without nuclear issues. The US rejected the scheme that would give control to Iran, with US Secretary of State Marco Rubio emphasising that the route must remain free. From the monetary side, market participants are focusing on the Federal Open Market Committee (FOMC) meeting of the Fed on Tuesday (28/04) and Wednesday (29/04) this week, which is expected to hold its interest rates. Fed Chair Jerome Powell is likely to emphasise uncertainty but open room for more persistent price pressures. “The market is watching the impact of energy shocks on inflation, with the risk of more hawkish communication if oil prices remain high,” said Liza. From the Asian region, market participants are focusing on the Bank of Japan (BoJ) decision, which is expected to hold its interest rate at 0.75 percent. “Although expectations of a hike briefly emerged, a more dovish stance and war uncertainty are driving wait-and-see, but the bias remains hawkish with potential for a hike in June,” said Liza. Domestically, the BEI through announcement No. Peng-00067/BEI.POP/04-2026 is overhauling IDX30, LQ45, and IDX80 effective 4 May 2026, with a focus on free float, liquidity, and elimination of HSC which is driving out big caps. From the macro side, Moody’s maintained the rating at Baa2 but downgraded the outlook to negative, signalling increasing fiscal pressures. Meanwhile, the government is responding to the energy surge by bearing 100 percent VAT on airline tickets for approximately 60 days starting from 25 April 2026 to maintain purchasing power. From the global positioning side, pressures are increasing after FTSE Russell confirmed Vietnam’s upgrade to emerging market, while Indonesia remains secondary EM and faces MSCI risks. On Tuesday (27/04) trading yesterday, European stock markets weakened uniformly, including the Euro Stoxx 50 down 0.32 percent, the UK FTSE 100 down 0.56 percent, the German DAX down 0.19 percent, and the CAC down 0.19 percent. Meanwhile, US stock markets on Wall Street moved variably on Tuesday (27/04), including the Nasdaq Composite up 0.01 percent to 27,305.68, the S&P 500 up 0.12 percent to 7,173.91, and the Dow Jones down 0.13 percent to 49,167.70. Regional Asian stock markets this morning include the Nikkei down 330.36 points or 0.55 percent to 60,207.00, the Hang Seng down 166.65 points or 0.64 percent to 25,759.00, the Shanghai down 5.88 points or 0.14 percent to 4,080.47, and the Straits Times up 20.32 points or 0.42 percent to 4,913.05.