JCI Weakens as Market Monitors Opportunities for Second Round of US-Iran Negotiations
The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange closed weaker on Thursday afternoon as market participants continued to monitor opportunities for a second round of negotiations between the United States (US) and Iran.
The JCI closed down 2.21 points or 0.03% at 7,621.38. Meanwhile, the LQ45 index of 45 leading stocks fell 2.63 points or 0.35% to 75.32.
“The JCI weakened while regional Asian markets strengthened, in line with hopes for the resumption of negotiations and a long-term peace agreement between the United States (US) and Iran, as well as the release of China’s economic data,” said Maximilianus Nico Demus, alias Nico, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Thursday.
From abroad, Nico said market participants’ attention is currently focused on hopes for a second round of negotiations between the US and Iran.
It was reported that the US and Iran are considering extending their two-week ceasefire to allow more time for talks.
However, the Strait of Hormuz remains effectively closed under a double blockade, and reports indicate that Iran may consider allowing a free passage route for ships through the Omani side of the Strait of Hormuz if an agreement is reached to prevent new escalations.
“Market participants assess the prospects of renewed negotiations and the potential for a long-term peace agreement between the US and Iran. Reports suggest this has led to oil prices trading below $100 per barrel, which helps alleviate inflation concerns,” said Nico.
On the other hand, Nico reminded that market participants remain sensitive to developments in the Strait of Hormuz, as new disruptions to energy supply routes could quickly weigh on sentiment and trigger volatility.
From China, China’s National Bureau of Statistics reported that the country’s economy grew 5% year-on-year (yoy) in the first quarter of 2026, up from 4.5% in the previous quarter.
“That growth is quite positive, providing an indication of the Chinese government’s ability to maintain its economy amid global uncertainty shocks, and showing that stronger export conditions are helping to offset weak domestic demand,” said Nico.
Domestically, Nico said market participants appear to still be monitoring developments in the Middle East conflict dynamics, as the second round of talks between the US and Iran is under discussion, with no official schedule set yet.
In addition, the market was coloured by profit-taking actions after the JCI experienced a rally over five days.
Other sentiment includes the potential slowdown in Indonesia’s economic growth, referring to the release from the International Monetary Fund (IMF) projecting Indonesia’s economic growth at 5% (yoy) in 2026, down from the previous projection of 5.1% (yoy), and slightly up to 5.1% (yoy) in 2027.
Globally, the IMF also forecasts growth slowing to 3.1% (yoy) in 2026 due to conflicts in the Middle East region.
Opening higher, the JCI moved into negative territory until the close of the first trading session. In the second session, the JCI remained in the red zone until the close of stock trading.
Based on the IDX-IC Sectoral Index, four sectors strengthened, led by the transportation & logistics sector which rose 3.00%, followed by the health sector and the technology sector, each up 2.08% and 1.43%.
Meanwhile, seven sectors corrected, with the non-primary consumer goods sector falling the most at 0.71%, followed by the infrastructure sector and the property sector, down 0.67% and 0.44% respectively.
The stocks that experienced the largest gains were DEFI, KRYA, LABA, AYLS, and AGRO. Meanwhile, the stocks that experienced the largest price declines were PSDN, SDMU, SMIL, IFSH, and ROTI.
Stock trading frequency was recorded at 2,636,682 transactions with 39.81 billion shares traded worth Rp18.14 trillion. 356 stocks rose, 318 stocks fell, and 119 stocks did not move.
Regional Asian stock markets this morning included the Nikkei index strengthening 1,441.26 points or 2.48% to 59,575.50, the Shanghai index up 28.34 or 0.70% to 4,055.55, the Hang Seng index up 446.96 points or 1.72% to 26,394.26, and the Straits Times index down 13.37 points or 0.27% to 5,007.83.