JCI Weakens as Markets Continue to Monitor Developments in the Middle East
Jakarta (ANTARA) - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) moved lower on Monday morning as market participants continued to monitor developments in the Middle East conflict between the United States (US) and Iran.
The JCI opened down 25.22 points or 0.36% at 7,001.56. Meanwhile, the LQ45 index of 45 leading stocks fell 3.05 points or 0.43% to 711.53.
“The JCI is expected to potentially test the 6,900-7,000 level again,” said Head of Research at Phintraco Sekuritas, Ratna Lim, in her analysis in Jakarta on Monday.
From overseas, developments in the Middle East conflict will remain a focus for market participants this week, as they continue to assess prospects for de-escalation or prolonged escalation.
In addition, market participants will monitor developments regarding the reopening of the Strait of Hormuz. US President Donald Trump warned Iran that the deadline for reopening the Strait of Hormuz is 6 April 2026, or it will face massive military escalation.
On the other hand, market participants will also monitor the release of US economic data, including the FOMC Minutes from The Fed, inflation figures, ISM services PMI data, initial Michigan Sentiment reading, and Price Consumer Expenditure (PCE) inflation data.
Domestically, the implementation of new rules on data transparency for High Shareholding Concentration (HSC) is likely to trigger short-term volatility due to overhang risks, particularly in low-liquidity stocks, although it will have positive long-term impacts through increased market transparency and liquidity.
On the other hand, market participants will monitor various economic data releases, including foreign exchange reserves data on Wednesday (8/4), as well as consumer confidence index and automotive sales data on Friday (10/4).
If the war drags on, it could keep crude oil prices high for an extended period, raising concerns that the state budget deficit will widen if the government increases fuel subsidies without reallocating other budget items.
“This could lead to capital outflows and continued rupiah depreciation,” said Ratna.
On Thursday (02/04) last week, major European stock exchanges mostly weakened, including the Euro Stoxx 50 down 0.70%, the UK FTSE 100 up 0.69%, the German DAX down 0.56%, and the French CAC 40 down 0.24%.
Meanwhile, Wall Street in the US mostly strengthened on Thursday (02/04), with the Dow Jones Industrial Average down 0.13% to 46,504, the S&P 500 up 0.11% to 6,582, and the Nasdaq Composite up 0.18% to 21,879.
Regional Asian stock exchanges this morning included the Nikkei up 559.51 points or 1.05% to 53,683.00, the Shanghai index down 39.19 points or 1.00% to 3,880.19, the Hang Seng down 117.50 points or 0.70% to 25,116.53, and the Straits Times up 11.92 points or 0.24% to 4,959.42.