FX.co ★ Soft Start Anticipated For Indonesia Stock Market

In the lead-up to the Lunar New Year break, the Indonesian stock market has seen a downturn over two consecutive sessions, shedding over 90 points or 1.3%. The Jakarta Composite Index currently hovers above the 7,160 mark, with indications of another potential decline on Thursday.

Globally, Asian markets are facing a bleak outlook due to apprehensions regarding future interest rates. While European markets showed mixed results, U.S. markets declined, suggesting Asian markets may similarly experience mixed outcomes.

The Jakarta Composite Index (JCI) ended slightly lower on Friday, with declines noted in financial stocks, cement producers, and resource companies. Specifically, the index fell by 66.59 points or 0.92% to close at the day's low of 7,166.06, after reaching a high of 7,261.45.

Notable movements in active stocks included a 0.57% drop for Bank CIMB Niaga, a 0.81% decrease for Bank Mandiri, and a 0.39% fall for Bank Danamon Indonesia. Other significant declines included Bank Negara Indonesia's 0.86% decrease and Bank Central Asia's 2.60% drop. Bank Rakyat Indonesia saw a 2.56% decline, Indocement fell by 1.22%, and Semen Indonesia decreased by 1.67%. In contrast, Indofood Sukses Makmur managed a 0.67% gain. United Tractors fell by 1.38%, Astra International decreased by 0.61%, and Energi Mega Persada tumbled 1.80%. Astra Agro Lestari weakened by 1.25%, Jasa Marga plunged 2.26%, Vale Indonesia plummeted 6.14%, while Timah saw modest gains of 0.48%. Finally, Bumi Resources dropped 4.00%, with Bank Maybank Indonesia, Indosat Ooredoo Hutchison, and Aneka Tambang remaining unchanged.

On Wall Street, sentiment was subdued as major indices opened mixed on Wednesday, trending downward to close in negative territory. The Dow Jones Industrial Average fell by 136.83 points or 0.31% to close at 44,713.52. The NASDAQ decreased by 101.26 points or 0.51% to end at 19,632.32, while the S&P 500 lost 28.39 points or 0.47% to finish at 6,039.31.

Wall Street's decline followed the Federal Reserve's anticipated decision to maintain interest rates after its first 2025 monetary policy meeting. The Fed highlighted persistent inflation concerns and a continued commitment to achieving a 2% inflation target. The next policy meeting is expected on March 18-19, with CME Group's FedWatch Tool suggesting a 77.6% likelihood of no rate change.

Oil prices dropped on Wednesday after U.S. crude inventory data revealed an increase last week, coupled with ongoing concerns over oil demand from China, resulting in a decrease in West Texas Intermediate crude futures by $1.15 or 1.56%, settling at $72.62 a barrel.