JCI Rallies for Nine Days Straight, All Eyes Now on BI

The Indonesian stock market continued its dynamic movement, with the Jakarta Composite Index (JCI) closing up 1.74% at 6,340.02 on Tuesday, extending its rally to nine consecutive days. The majority of sectors ended in positive territory, led by utilities which surged 4.68%, followed by property up 3.97% and raw materials up 3.53%. Market activity was robust, with transaction values reaching Rp21.50 trillion. Top movers included Amman Mineral Internasional (AMMN), Dian Swastika Sentosa (DSSA), and Bank Rakyat Indonesia (BBRI). Foreign investors recorded a net buy of Rp31.36 billion. Attention now turns to Bank Indonesia’s interest rate decision.

In the currency market, the rupiah also strengthened against the US dollar. The local currency moved within a range of Rp17,860 to Rp17,945 per US dollar during the session. The rupiah’s gains were supported by a slight weakening of the US dollar index, as hopes for easing Middle East tensions grew following reports that Tehran had accepted a 10-day ceasefire proposal from mediators. This development reduced demand for the US dollar as a safe-haven asset.

Meanwhile, Wall Street rallied overnight, driven by a surge in semiconductor stocks that diverted investor attention from Middle East tensions and tariff wars. The S&P 500 rose 0.86% to 7,507.32, the Nasdaq Composite jumped 1.26% to 25,829.61, and the Dow Jones Industrial Average gained 0.74% to 52,223.32. The Philadelphia Semiconductor Index soared for a second day, as investors feared missing out on potential gains ahead of major tech earnings reports. Analysts noted that while corporate earnings are expected to be strong, stock prices already reflect near-perfect expectations, potentially limiting further upside. Investors largely ignored President Trump’s announcement of 50% tariffs on various Canadian imports and rising geopolitical risks, including Houthi threats to commercial shipping in the Red Sea.