JCI Potentially Weakens Amid Global Sentiment Dominance

Overall, the JCI is expected to move within a limited range with a defensive tendency, where global factors (oil prices, the US dollar, and geopolitics) will be more dominant in determining the short-term direction compared to domestic catalysts.

Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) on Thursday has the potential to weaken, triggered by the dominance of global sentiment.

Opening stronger, the JCI weakened by 51.79 points or 0.69 percent to 7,489.82 at 09:55 WIB. Meanwhile, the group of 45 leading stocks or LQ45 Index fell 6.49 points or 0.88 percent to 729.48.

“Overall, the JCI is expected to move within a limited range with a defensive tendency, where global factors (oil prices, the US dollar, and geopolitics) will be more dominant in determining the short-term direction compared to domestic catalysts,” stated the Lotus Andalan Sekuritas Research Team in its study in Jakarta on Thursday.

From abroad, although geopolitical risks remain, reflected in rising oil prices due to disruptions in the Strait of Hormuz, market participants tend to ignore this factor and focus more on domestic fundamentals.

Domestically, from a macro perspective, Bank Indonesia’s (BI) decision to maintain the BI-Rate at 4.75 percent still failed to support the rupiah, while the rise in SBN yields to 6.64 percent indicates ongoing capital outflow from the bond market.

Overall, a combination of external and domestic factors, including MSCI sentiment, foreign outflows, and pressure in the bond market, indicates that the short-term outlook for Indonesia’s financial markets remains defensive with high volatility potential.

On Wednesday (22/04) trading, European stock exchanges uniformly weakened, including the Euro Stoxx 50 down 0.49 percent, the UK’s FTSE 100 down 0.21 percent, Germany’s DAX down 0.31 percent, and France’s CAC 40 down 0.96 percent.

Meanwhile, the US Wall Street exchanges uniformly strengthened on Wednesday (22/04), including the Dow Jones Industrial Average up 0.69 percent to 49,490.03, the S&P 500 up 1.05 percent to 7,137.90, and the Nasdaq Composite up 1.73 percent to 26,937.28.

Regional Asian stock exchanges this morning, including the Nikkei down 637.86 points or 1.07 percent to 58,948.00, the Shanghai Index down 17.79 points or 0.43 percent to 4,088.47, the Hang Seng down 237.74 points or 0.91 percent to 25,925.50, and the Straits Times down 49.60 points or 0.99 percent to 4,953.12.