Why the JCI Suddenly Jumped Over 2%

The Jakarta Composite Index (JCI) shot up at the opening of trading on Friday (3/7/2026), extending gains recorded the previous day. At the market open at 09:00 WIB, the JCI rose 1.07% or 61 points to 5,806.17. Approximately thirty minutes after the market opened, the JCI accelerated further, gaining up to 2.39% to reach 5,881. Transaction value was recorded at around Rp 2.59 trillion, with a trading volume of 5.57 billion shares across 358,000 transactions. A total of 460 stocks advanced, 101 declined, and 155 remained unchanged. The stocks with the largest transaction values in early trade were BBCA, BBRI, BMRI, BRPT, and TPIA. All sectors strengthened, with the highest gains recorded by utilities, basic materials, financials, and technology. Blue-chip stocks, particularly banking and state-owned enterprises (BUMN), surged significantly and were the main drivers of the JCI’s performance. Conglomerate stocks also posted significant gains, helping to propel the index’s rapid rise. Bank Central Asia was the primary support for the JCI, contributing 13.27 index points, followed by Bank Mandiri (BMRI) with a 9-point gain. Other banking stocks pushing the index higher included Bank Rakyat Indonesia (BBRI) with 4.39 points and Bank Negara Indonesia (BBNI) with 2.98 points. Conglomerate stocks that were major drivers included AMMN, BREN, and DCII. Blue-chip stock Astra International (ASII) contributed a 5.72-point gain, while two BUMN stocks, Aneka Tambang (ANTM) and Telkom Indonesia (TLKM), each contributed around 3 points. All actively traded BUMN stocks on the Indonesia Stock Exchange strengthened, in line with the announcement that Danantara had completed all BUMN financial reports for December 2025, highlighting the strong performance of state-owned enterprises over the past year through April 2026. All major banking stocks (KBMI III and IV) advanced, along with all gold and nickel mining stocks. Heading into the end of the trading week, Indonesia’s financial market received positive news from the United States, which will celebrate its 250th Independence Day on Saturday (4/7/2026). The latest US labour data provided mixed signals but generally indicated that the US economy is beginning to cool. This makes it more likely the Fed will hold interest rates at its next meeting while continuing to monitor inflation developments. If the labour market continues to weaken and inflation eases in the coming months, the urgency to raise rates at the next meeting will diminish. Meanwhile, the US dollar index also weakened to 100.856, its lowest level since 19 June 2026, signalling that investors are offloading dollars, which is expected to have a positive impact on the rupiah. This news is expected to provide positive sentiment for Indonesia’s financial markets. Asia-Pacific stock markets were mixed on Friday amid continued rotation by investors out of technology stocks, following weakness in the tech and semiconductor sectors on Wall Street. In Japan, the Nikkei 225 opened down 0.86%, while the Topix index gained 0.34%. South Korea’s Kospi rose 0.97%, but the small-cap Kosdaq fell 1.12%. Australia’s S&P/ASX 200 gained 0.42%. Hong Kong’s Hang Seng index futures were at 23,061, slightly higher than the previous close of 23,055.03. The mixed Asian session followed a varied close on Wall Street, where the Dow Jones Industrial Average surged 594.83 points, or 1.14%, to a record closing high of 52,900.07, after weaker-than-expected June employment data boosted hopes for a Fed rate cut. The S&P 500 was nearly flat, while the Nasdaq fell 0.8%.