JCI Strengthens Driven by Expectations of De-escalation in US-Iran Conflict

Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) moved higher on Wednesday morning, driven by market participants’ expectations of de-escalation in the conflict between the United States (US) and Israel against Iran. The JCI opened up 101.03 points or 1.43% at 7,149.25. Meanwhile, the LQ45 index of 45 leading stocks rose 11.78 points or 1.65% to 727.59. “The JCI is expected to have rebound potential due to positive sentiment from expectations of de-escalation in the Middle East. It is estimated that the JCI will test resistance levels at 7,100-7,200,” said Head of Research at Phintrao Sekuritas, Ratna Lim, in her analysis in Jakarta on Wednesday. From abroad, market participants’ hopes for de-escalation in the US-Israel conflict against Iran in the Middle East region have resurfaced. Messages surrounding the ongoing US and Israel operations against Iran have turned positive, following reports that US President Donald Trump is open to ending the war without a major reopening of the Strait of Hormuz. On the other hand, Iranian state television reported that the country is ready to end the war if given security guarantees. Although there are doubts about the veracity of the report, the decline in crude oil prices has become a positive factor for index movements on European and Wall Street stock exchanges. Domestically, market participants are awaiting several domestic economic data releases on Wednesday (1/4), including the March 2026 Manufacturing PMI index, which is expected to slow to 51.2 from the previous 53.8, due to religious holiday breaks. Then, the February 2026 trade balance is expected to record a surplus of $1.2 billion, or an increase from $0.9 billion in January 2026. Meanwhile, March 2026 inflation is expected to be 0.3% month-to-month (mtm) and 4.9% year-on-year (yoy) from the previous 0.68% (mtm) and 4.76% (yoy) in February 2026. On the other hand, State Secretary Minister Prasetyo Hadi stated that Pertamina will not raise subsidised and non-subsidised fuel prices. In addition, the government has officially announced the implementation of work-from-home (WFH) for civil servants (ASN) in central and regional government agencies every Friday, effective from 1 April 2026. That policy will be reviewed in the next two months. The government is also accelerating the implementation of B50 to increase energy independence. Furthermore, there is a budget efficiency policy in ministries/institutions (K/L) with potential efficiency reaching Rp121 trillion to Rp130 trillion. On Tuesday’s trading (31/3), European stock exchanges uniformly strengthened, including the Euro Stoxx 50 up 0.49%, the UK FTSE 100 up 0.48%, the German DAX up 0.52%, and the French CAC up 0.57%. The US Wall Street also uniformly strengthened on Tuesday’s trading (31/03), including the Dow Jones Industrial Average up 2.49% closing at 46,341.51, the S&P 500 up 2.91% to 6,528.52, and the Nasdaq Composite up 3.43% closing at 23,740.19. Regional Asian stock exchanges this morning, including the Nikkei up 2,126.28 points or 4.16% to 53,190.00, the Shanghai up 50.31 points or 1.29% to 3,942.18, the Hang Seng up 491.36 points or 1.98% to 25,279.50, and the Straits Times up 75.55 points or 1.55% to 4,961.00.