JCI Strengthens to 7,377 Amid Rupiah Pressure and Foreign Net Selling

The Composite Stock Price Index (JCI) successfully maintained its positive trend during Friday’s trading (10/4). The composite index strengthened by around 0.40% to the level of 7,377.63, continuing the upward movement from the previous day, which closed at 7,307.

Although the chart shows an increase, the Indonesian capital market conditions are not yet fully stable. This is triggered by the still low confidence of foreign investors in domestic assets. Based on the latest trading data, foreign investors still recorded significant net selling actions amounting to Rp1.8 trillion at the previous trading close.

Pressure on the financial markets is increasingly felt along with the weakening of the rupiah exchange rate, which is now moving towards the level of Rp17,100 per US dollar.

Head of Research and Chief Economist at Mirae Asset, Rully Arya Wisnubroto, assesses that the current JCI strengthening is still illusory in nature and vulnerable to correction. According to him, the index’s movement is highly dependent on short-term global dynamics.

“This indicates that foreign confidence in Indonesian assets has not fully recovered. The current JCI rally is still considered fragile and heavily dependent on global sentiments, such as news of US-Iran conflict de-escalation and corrections in world oil prices,” Rully stated in his official remarks on Friday (10/4).

In addition to external factors, Rully highlighted several domestic obstacles that hinder the re-rating of the Indonesian stock market towards a more optimistic direction. Some of these factors include exchange rate stability, slowing global economic growth prospects, and limited room for the central bank to cut interest rates.

Global crude oil prices reversed to strengthen, with WTI oil at 97.44 US dollars per barrel.