JCI Strengthens Driven by News of US Sending Proposal to Iran to End War
The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (BEI) closed significantly higher on Wednesday afternoon (25/3) trading. Positive sentiment was driven by reports of diplomatic efforts by the United States (US) submitting a 15-point proposal to Iran to end the conflict in the Middle East.
The JCI rose 195.28 points or 2.75% to 7,302.12. In line with this, the index of the top 45 blue-chip stocks (LQ45) also increased by 24.04 points or 3.33% to 764.45.
“Asian markets were dominated by gains amid rising optimism over the potential resolution of the Middle East conflict, following reports that the US is working on talks with Iran,” said Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, in his analysis quoted from Antara on Wednesday (25/3).
Market optimism emerged after The New York Times reported that Washington had sent a proposal containing 15 points to Tehran. Meanwhile, Israeli media stated that the US is pushing for a one-month ceasefire to facilitate negotiations scheduled to begin as soon as Thursday (26/3).
The report has 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 (25/3).
Domestically, Finance Minister Purbaya Yudhi Sadewa stated that efficiency measures across various ministries could save state expenditure of up to Rp80 trillion. Additionally, the National Nutrition Agency (BGN) proposed reducing the frequency of daily meal distributions, potentially saving Rp40 trillion, though it still awaits final decision from President Prabowo.
Currently, 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 for implementing Work From Home (WFH) and restricting ministry 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 stock trading close.
Based on the IDX-IC Sectoral Index, nine sectors strengthened, led by the industrial sector (+5.98%) and the energy sector (+5.15%). Meanwhile, the basic materials and healthcare sectors experienced slight declines of 0.17% and 0.12%, respectively.
The stocks with 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. 574 stocks rose, 148 fell, and 101 remained unchanged.
Regional Asian stock exchanges 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.