JCI Potentially Volatile Dominated by Global Oil Price Sentiment

Global sentiment is dominated by the escalation of conflict in the Strait of Hormuz following Iran’s increased attacks on ships and energy facilities. Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) on Tuesday is potentially moving volatile, dominated by sentiment from global crude oil price volatility. The JCI opened weaker by 3.38 points or 0.05 percent to 6,968.57. Meanwhile, the group of 45 leading stocks or LQ45 Index fell 0.80 points or 0.12 percent to 673.76. “Global sentiment is dominated by the escalation of conflict in the Strait of Hormuz after Iran increased attacks on ships and energy facilities, including a fire at the United Arab Emirates (UAE) oil port,” said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Tuesday. Developments in the Middle East conflict, the United States (US) responded through the Project Freedom initiative to open shipping lanes with support from 15,000 military personnel and more than 100 aircraft. Meanwhile, Iran warned that any foreign power entering the strait would be attacked. “Tensions have risen again after a four-week ceasefire last month, while peace negotiations remain deadlocked, especially regarding the nuclear issue,” said Liza. Global oil prices surged, with Brent around US$113-114 per barrel and WTI around US$105-106 per barrel, rising due to Iran’s attacks on UAE ships and energy facilities as well as disruptions in the Strait of Hormuz shipping lane. Domestically, Indonesia’s inflation continues to ease with the Consumer Price Index (CPI) inflation at 2.42 percent in April 2026 and core inflation at 2.44 percent, indicating that price pressures are increasingly under control. Meanwhile, the trade balance remains in surplus at US$3.32 billion or a surplus for 71 consecutive months, but below expectations, with exports down 3.1 percent (year-on-year) while imports fell sharply to 1.51 percent (year-on-year), reflecting weak external demand and domestic moderation. “Fundamentally, the Indonesian economy shows price stability but with signs of slowing activity, as seen from the manufacturing PMI contracting again at 49.1, as well as weakening growth momentum amid global pressures,” said Liza. On Monday (04/05) trading, European stock markets uniformly weakened, including the Euro Stoxx 50 down 2.18 percent, the UK’s FTSE 100 down 0.14 percent, Germany’s DAX down 1.24 percent, and the CAC down 1.71 percent. US stock markets on Wall Street also uniformly weakened on Monday (04/05), including the Nasdaq Composite down 0.21 percent to 27,651.82, the S&P 500 down 0.41 percent to 7,200.75, and the Dow Jones down 1.13 percent to 48,941.90. Regional Asian stock markets this morning include the Nikkei up 228.20 points or 0.38 percent to 59,513.12, the Hang Seng down 193.38 points or 0.74 percent to 25,902.50, the Shanghai up 4.64 points or 0.11 percent to 4,112.16, and the Straits Times down 14.77 points or 0.30 percent to 4,909.54.