JCI Strengthens Driven by News of US Sending Peace Proposal to Iran
Jakarta (ANTARA) - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (BEI) closed higher on Wednesday afternoon, driven by circulating reports that the United States (US) has sent a 15-point proposal to Iran as an effort to end the ongoing conflict.
The JCI closed up 195.28 points or 2.75% at 7,302.12. Meanwhile, the LQ45 index of 45 leading stocks rose 24.04 points or 3.33% to 764.45.
“Asian markets were dominated by gains amid rising optimism over the potential resolution of the conflict in the Middle East, following reports that the US is seeking talks with Iran,” said Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, known as Nico, in his analysis in Jakarta on Wednesday.
The New York Times reported that Washington has sent a proposal containing 15 points to Iran to resolve the conflict, while Israeli media mentioned that the US is seeking a one-month ceasefire to facilitate negotiations.
Additional reports indicated that the US and regional mediators are discussing the possibility of holding peace talks with Iran as early as Thursday (26/03), although it is still awaiting a response from Tehran.
These reports have prompted a correction in global crude oil prices, with WTI oil weakening around 5% to US$87 per barrel and Brent oil falling more than 6% to US$98 per barrel on Wednesday afternoon (25/03).
In addition, the National Nutrition Agency (BGN) has proposed reducing the frequency of daily meal distributions as an efficiency measure, potentially saving around Rp40 trillion. However, this remains a proposal and will soon be submitted to President Prabowo for final decision.
To date, the government is reviewing several steps to curb the impact of rising global crude oil prices, including fiscal resilience strategies by utilising the Budget Surplus Balance (SAL) and optimising taxes and non-tax state revenues from the commodities sector.
Furthermore, the government is also examining energy saving and consumption strategies, with options including the implementation of Work From Home (WFH) and restrictions on ministerial spending.
Opening lower, the JCI moved into positive territory until the close of the first trading session. In the second session, the JCI remained in the green zone until the close of stock trading.
Based on the IDX-IC Sectoral Index, nine sectors strengthened, led by the industrial sector which rose 5.98%, followed by the energy sector and non-primary consumer goods sector, which increased 5.15% and 3.84% respectively.
Meanwhile, two sectors weakened: the basic materials sector fell the most at 0.17%, followed by the health sector which declined 0.12%.
The stocks experiencing the largest gains were ESTI, ICON, BELL, WOWS, and SOTS. The stocks with the largest declines were ROCK, NZIA, ALKA, PSDN, and EMAS.
Stock trading frequency was recorded at 2,130,470 transactions, with 38.44 billion shares traded worth Rp25.92 trillion. A total of 574 stocks rose, 148 fell, and 101 remained unchanged.
Regional Asian stock markets this afternoon included the Nikkei Index strengthening 1,474.72 points or 2.82% to 53,727.00, the Shanghai Index up 50.56 points or 1.30% to 3,931.84, the Hang Seng Index up 272.24 points or 1.09% to 25,335.95, and the Straits Times Index up 42.11 points or 0.87% to 4,904.54.