Observer sees potential for further short-term gains in JCI
Capital market observer Reydi Octa sees an opportunity for further strengthening of the Jakarta Composite Index (JCI) in the short term, although volatility is expected to remain high. He noted that as long as no new negative sentiments arise from domestic or global levels, the possibility for the JCI to rebound remains open.
“Nevertheless, investors still need to be wary of profit-taking actions following significant gains, meaning the JCI movement will likely continue in a consolidation pattern with a positive tendency,” Reydi stated when contacted in Jakarta on Tuesday.
Reydi observed that foreign investors currently tend to remain cautious and have not yet become fully aggressive in entering the Indonesian stock market. Although selling pressure has begun to ease, he noted that foreign investors are still closely monitoring the stability of the Rupiah exchange rate, global interest rate trends, and the progress of capital market reforms in Indonesia. “Foreign focus is currently more on liquid stocks with strong fundamentals,” Reylar added.
Reydi assessed that the JCI’s strengthening in Tuesday’s trading was driven by a combination of improving global sentiment and technical factors. Following significant selling pressure in recent periods, he believes market participants are taking advantage of the relatively attractive valuations of blue-chip stocks. “Furthermore, the easing of investor concerns regarding several external sentiments has also increased risk appetite in the stock market,” said Reydi.
Regarding supporting sectors, Reydi noted that the main drivers remain the banking sector and large-cap conglomerate stocks that hold significant weight in the JCI, contributing positively to the index’s strength.
According to closing data from the Indonesia Stock Exchange (IDX) on Tuesday afternoon, the JCI closed up 68.04 points, or 1.11 per cent, to a position of 6,195.42. Trading frequency was recorded at 2,572,956 transactions, with a total of 31.25 billion shares traded valued at Rp25.47 trillion. A total of 281 stocks rose, 389 declined, and 147 remained unchanged.
Based on the IDX-IC Sectoral Index, five sectors strengthened, led by the energy sector which rose by 1.78 per cent, followed by the infrastructure and basic materials sectors, which rose by 0.64 per cent and 0.58 per cent respectively. Meanwhile, six sectors weakened, with the transportation & logistics sector falling the most at 3.20 per cent, followed by the healthcare and property sectors, which fell by 2.65 per cent and 1.13 per cent respectively.