JCI Weakens Ahead of Weekend, Burdened by High Oil Prices
Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (IDX) moved lower on Friday morning, weighed down by global crude oil prices that have remained at high levels for an extended period.
The JCI opened down 0.53 points or 0.01 percent to 7,378.07. Meanwhile, the LQ45 Index of 45 leading stocks fell 1.51 points or 0.10 percent to 715.75.
“The JCI is expected to continue weakening and close with a gap down at 7,308, testing the 7,300 level,” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her analysis in Jakarta on Friday.
From overseas, tensions between the United States (US) and Iran have intensified, increasing uncertainty over the prospects for future peace negotiations.
Although US President Donald Trump announced an extension of the ceasefire between the two countries, tensions have risen due to naval activities in and around the Strait of Hormuz.
The focal point of the tension is the ongoing US naval blockade of Iranian ports and coastline. The US Central Command stated that it has redirected 33 ships since the blockade began.
Trump ordered the US Navy to shoot and sink any vessel placing mines in the waters of the Strait of Hormuz. The rising tensions in the Strait of Hormuz have raised doubts about the potential for negotiations between the two countries.
Mediators from Pakistan, Turkey, and Egypt are struggling to salvage the peace talks, including arranging a potential meeting as soon as possible on Friday (25/04).
On the other hand, Trump stated that Israel and Lebanon have extended their ceasefire for three weeks.
Domestically, negative sentiment also stems from the rupiah’s weakening, which touched Rp17,300 in Thursday’s trading (23/04), marking its all-time lowest level and the deepest depreciation in Asia.
“The prolonged closure of the Strait of Hormuz keeps oil prices at high levels, raising concerns about potential inflation and widening budget deficits,” said Ratna.
Global oil prices, specifically Brent and WTI, were recorded at $105.93 per barrel and $96.57 per barrel, respectively, in morning trading at 09:42 WIB.
“However, positive quarterly performance results from most large-cap issuers have helped limit the JCI’s decline,” said Ratna.
In Thursday’s trading (23/04), major European stock exchanges mostly weakened, including the Euro Stoxx 50 down 0.32 percent, the UK’s FTSE 100 down 0.16 percent, Germany’s DAX down 0.16 percent, and the CAC up 0.87 percent.
Meanwhile, US stock exchanges on Wall Street uniformly weakened on Thursday (23/04), including the Nasdaq Composite down 0.57 percent to 26,782.63, the S&P 500 down 0.41 percent to 7,108.4, and the Dow Jones down 0.36 percent to 49,310.32.
Regional Asian stock exchanges this morning included the Nikkei up 218.27 points or 0.37 percent to 59,358.50, the Hang Seng down 176.70 points or 0.68 percent to 25,738.50, the Shanghai down 21.08 points or 0.51 percent to 4,072.17, and the Straits Times down 37.12 points or 0.75 percent to 4,906.99.