JCI Gains Following Global Oil Price Correction: Which Sectors Lead?

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TEMPO.CO, Jakarta The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed higher on Thursday afternoon, supported by a correction in crude oil prices and optimism over a deal between the United States and Iran.

JCI closed up 81.85 points, or 1.15 percent, to 7,174.32. Meanwhile, the 45-stock blue chip index, or LQ45, rose 11.03 points, or 1.62 percent, to 693.79.

"The JCI closed higher, driven by optimism for peace and falling oil prices," said Ratna Lim, Head of Research at Phintraco Sekuritas, in a study in Jakarta on Thursday, as quoted by ANTARA.

From abroad, Ratna said that optimism that a peace agreement would soon be reached between the U.S. and Iran had driven the continued correction in WTI and Brent oil prices to below US$100 per barrel.

The correction in global crude oil prices has eased concerns about rising inflation and a widening budget deficit, if the U.S. and Iran agree to end the war and oil prices continue to weaken. Domestically, the rupiah exchange rate closed 0.3 percent stronger at Rp17,320 per U.S. dollar in today's trading, in line with the weakening of the U.S. dollar index.

Opening higher, the JCI remained in positive territory until the close of the first trading session. In the second session, the JCI remained in the green until the close of trading. Based on the IDX-IC Sectoral Index, six sectors strengthened, led by the financial sector, which rose by 1.88 percent, followed by the industrial and property sectors, which rose by 1.17 percent and 1.12 percent, respectively.

The stocks that experienced the biggest gains were DPUM, ESIP, DEPO, NATO, and ALKA. Meanwhile, the stocks that saw the sharpest declines were RICY, ABDA, HALO, ARGO, and TPIA. Stock trading volume reached 2,675,918 transactions, with 42.37 billion shares traded, valued at Rp23.19 trillion. 361 stocks rose, 295 declined, and 160 remained unchanged.

This afternoon, the Asian regional stock exchanges included the Nikkei index, which rose 3,449.38 points or 5.80 percent to 62,962.50, the Shanghai index, which rose 19.92 points or 0.48 percent to 4,180.09, the Hang Seng index, which rose 412.50 points or 1.57 percent to 26,626.28, and the Strait Times index, which rose 14.58 points or 0.30 percent to 4,941.96.

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