JCI Weakens Driven by Combination of Global "Risk-Off" Sentiment and Domestic Pressures
Jakarta (ANTARA) - The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (IDX) closed weaker on Thursday afternoon, triggered by a combination of global risk-off sentiment (where global investors avoid risky assets) and domestic pressures.
The JCI closed down 143.43 points or 2.03% at 6,956.80. Meanwhile, the LQ45 index of 45 leading stocks fell 14.80 points or 2.16% to 669.34.
“The JCI’s weakening today was triggered by a combination of global risk-off sentiment and domestic pressures. Globally, the strengthening of the US dollar and uncertainty over interest rates are driving capital outflows. Domestically, issues with free float, HSC, and index rebalancing are deepening the correction,” said market observer Reydi Octa when contacted by Antara in Jakarta on Thursday.
Reydi stated that the stance of investors, particularly foreigners, is currently defensive, with net selling in the Indonesian stock market.
“They are more selective, focusing on liquid and stable markets, while temporarily reducing exposure to Indonesia,” said Reydi.
He continued that investors are currently awaiting clarity on the direction of global benchmark interest rate policies, stabilisation of the rupiah exchange rate, and certainty in domestic market regulations to avoid investor doubts in future investment decisions.
In the short term, Reydi projects that the JCI could remain sideways, tending towards weakness, but with opportunities for a technical rebound.
“As long as there are no strong catalysts and foreign fund flows have not returned, the upward trend remains limited,” said Reydi.
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, all eleven sectors weakened, with the infrastructure sector experiencing the deepest decline of 2.54%, followed by the basic materials sector and the industrial sector, which fell 2.43% and 2.39% respectively.
The stocks with the largest gains were SDMU, HERO, ADHI, INDS, and SONA. Meanwhile, the stocks with the largest declines were BOBA, KONI, MAIN, LUCK, and BLUE.
Stock trading frequency was recorded at 2,663,979 transactions, with 48.19 billion shares traded worth Rp21.87 trillion. 133 stocks rose, 576 stocks fell, and 105 remained unchanged.
Regional Asian stock exchanges this afternoon included the Nikkei index weakening by 584.96 points or 0.98% to 59,332.50, the Shanghai index strengthening by 4.64 points or 0.11% to 4,112.16, the Hang Seng index weakening by 335.31 points or 1.28% to 25,776.53, and the Straits Times index strengthening by 51.72 points or 1.06% to 4,912.69.