JCI Opens Lower at 6,065.63, Volatility Expected to Persist

TEMPO.CO, Jakarta - Indonesia’s benchmark Jakarta Composite Index (JCI) opened lower on Friday morning, falling 29.31 points, or 0.48 percent, to 6,065.63 amid continued market volatility and concerns over global economic uncertainty.

The LQ45 index, which tracks 45 leading stocks on the Indonesia Stock Exchange (IDX), also slipped 2.42 points, or 0.39 percent, to 613.98.

Capital market analyst and founding member of Republik Investor, Hendra Wardana, said the JCI is likely to remain volatile throughout the trading session.

According to Hendra, investor sentiment continues to be influenced by movements in the rupiah exchange rate, foreign capital outflows, escalating geopolitical tensions involving the United States and Iran, and market reactions to domestic economic policies.

“If the rupiah weakens again and foreign selling pressure continues, the JCI could potentially retest the 6,000 support level,” Hendra said, as quoted by Antara.

He noted, however, that after the sharp correction seen over the past several days, the market may also experience a short-term technical rebound, particularly if investors begin bargain hunting in oversold large-cap stocks.

Hendra added that investors are also closely watching global oil price stability and the direction of US Treasury yields, both of which remain key indicators for capital flows into emerging markets such as Indonesia.

In the short term, he advised investors to focus on defensive stocks and companies with strong fundamentals that are relatively resilient to external pressures.

Technically, Hendra said the JCI remains in a strong bearish trend and has yet to show convincing signs of recovery. The recent decline below the key support levels of 6,200 and 6,100 reflects heavy selling pressure in the market.

The 6,000 level is now seen as a crucial psychological support zone.

“If this level is breached, the JCI could continue falling toward the next support area of 5,880 to 5,900,” he said.

Meanwhile, short-term resistance is estimated to be in the range of 6,120 to 6,250. Hendra said the index would only have a stronger chance of rebounding if it can remain above the 6,200 level with higher buying volume.

“For now, market movements still reflect panic selling and high volatility, so investors need to be more selective and disciplined in managing risks,” he said.

Global markets showed mixed performances overnight. In Europe, the Euro Stoxx 50 fell 0.20 percent, Germany’s DAX lost 0.53 percent, and France’s CAC 40 declined 0.39 percent, while the UK’s FTSE 100 edged up 0.11 percent.

Wall Street, however, closed higher on Thursday, with the Dow Jones Industrial Average rising 0.55 percent, the S&P 500 gaining 0.17 percent, and the Nasdaq Composite advancing 0.20 percent.

Asian markets traded mostly higher on Friday morning. Japan’s Nikkei index surged 2.34 percent, Shanghai’s Composite index rose 0.12 percent, Hong Kong’s Hang Seng gained 0.69 percent, and Singapore’s Straits Times index added 0.17 percent.

Read: Indonesia to Start US$25,000 Monthly Cap on FX Purchases in June

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