JCI Potentially Volatile as Market Monitors US-Iran Ceasefire Efforts

Jakarta (ANTARA) - The Composite Stock Price Index (JCI) on the Indonesia Stock Exchange (BEI) is potentially set to move volatilily on Thursday, as market participants continue to monitor the United States’ (US) ceasefire efforts towards Iran.

The JCI opened stronger by 11.54 points or 0.16 percent to 7,313.66. Meanwhile, the LQ45 index of 45 leading stocks rose 0.42 points or 0.06 percent to 746.87.

“Kiwoom Research recommends implementing Average Up with full calculation and applying disciplined money management,” said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Thursday.

From abroad, the US has proposed a 15-point peace plan, including reopening the Strait of Hormuz and dismantling Iran’s nuclear facilities. Trump stated that negotiations are underway, but Iran insisted there are no talks and will not halt the war until its conditions are met.

Communication is still ongoing via mediators such as Pakistan, Turkey, and Egypt, but the gap between the two sides remains very wide.

“The market is in a ‘hope vs reality’ condition. Every positive headline triggers risk-on sentiment, but it is immediately countered by denial from Iran,” said Liza.

Meanwhile, global interest rate expectations have shifted dramatically, with the market no longer pricing in a Federal Reserve rate cut this year, down from previous expectations of two cuts.

BofA stated that current oil prices are already in a “hawkish” zone for the Fed. If WTI oil sustains at $80-100 per barrel, the risk of a rate hike increases. However, if the shock is temporary and pressures consumption, the Fed could return to a dovish stance.