Five-Day Rally Continues, JCI Reaches Highest Level in 5 Weeks
The Indonesian stock market rallied sharply on Tuesday morning, with the JCI rising around 119 points, or 1.6%, to 7,617, extending its rally to five consecutive sessions and bringing the index to its highest level in approximately five weeks. This strengthening was in line with improving global risk appetite after Wall Street closed higher overnight.
External sentiment was the main driver. The market responded positively to signals that Washington was still open to dialogue with Tehran, even though tensions in the region remained high. Hopes for new negotiations also weighed on oil prices, with Brent falling 2.7% to US$96.66, easing concerns about surging global inflation and reinvigorating interest in riskier assets.
Domestically, the market also positively responded to the government's narrative on energy security, including the promotion of strategic cooperation and the development of an electric vehicle ecosystem to reduce dependence on global energy volatility. This combination of calmer global sentiment and expectations regarding domestic agendas kept almost all sectors on the stock exchange trading in the green.
The most prominent gains came from the industrial, basic materials, and infrastructure sectors, while a number of leading stocks such as Petrosea, Darma Henwa, Bumi Resources, Bank Central Asia, and Bank Rakyat Indonesia were the driving force behind the gains. This fairly even rally indicates that buying interest was not focused on a single theme, but spread across several key market sectors.
However, the market is not entirely risk-free. Investors are still closely monitoring March trade data from China, Indonesia's main trading partner, amid signs of a slowdown in the country's exports. Reuters reported that Chinese exports in March grew only 2.5% year-on-year, well below expectations, indicating that global demand remains fragile.
On the other hand, domestic pressures also need to be considered. Rising energy costs still have the potential to drive inflation, while the weakening rupiah could add pressure to import-dependent sectors. Therefore, although the JCI is currently experiencing positive momentum, the market remains potentially sensitive to changes in global sentiment and regional economic data.
Reasons:
Wall Street strengthened, driving positive sentiment across Asian markets, including Indonesia.
Hopes for continued US-Iran dialogue have eased market tensions and improved appetite for risky assets.
Oil prices weakened, easing concerns about global inflation.
Optimism regarding the energy security agenda and EV development also supported domestic sentiment.
Strengthening occurred across sectors, particularly industry, raw materials, and infrastructure.
Things to Watch:
Developments in US-Iran negotiations, as these remain a key driver of global sentiment.
Chinese economic data, particularly trade and growth, directly impact the regional demand outlook.
Oil price movements, as sharp changes can impact inflation and the commodity sector. (Zaf)
Source: Newsmaker.id
