JCI Touches Highest Record At 8,025 Amid BI Rate Scarcity To Reshuffle

JCI (Photo: Doc Antara)

JAKARTA The Composite Stock Price Index (JCI) set the highest record in history or all time high (ATH) after Bank Indonesia's decision to cut the BI Rate benchmark interest rate by 25 basis points to 4.75 percent.

According to data from the Indonesia Stock Exchange (IDX) on Wednesday, September 17, the JCI closed higher by 0.85 percent to 8,025.18 at the close of trading today.

Throughout the trading session, JCI moved in the range of 7,940.51 to 8,025.17. It was recorded that 360 stocks had increased, 318 stocks were corrected, and 124 stocks had not changed.

Then, the total volume of stock trading on the IDX on Wednesday reached 43.74 billion with a transaction value of IDR 17.86 trillion.

Indonesia Capital Market Observer Reydi Octa said that today's JCI movement was dominantly influenced by the cutting of the BI interest rate by 25 basis points and the potential for a reduction in the United States reference interest rate (FFR) which is expected to be announced in the early hours of the morning.

According to Reydi, the JCI increase is not a coincidence because this increase is in line with the flow of foreign funds in the last few days and the transfer of funds of Rp200 trillion from Bank Indonesia to Himbara.

"Although there is a ministerial reshuffle for the second time, the market sees the transitional results leading to a pro-economic recovery policy, supported also by the 8+4+5 economic stimulus program which was announced yesterday by the government," he told VOI, Wednesday, September 17.

He also added that the JCI has the potential to continue to strengthen, especially because of the macro catalyst which encourages the aggressive entry of foreign investors towards the end of the year.

According to him historically, towards the end of the year the JCI tends to be closed at a higher level due to seasonal phenomena such as window dressing and Santa Claus rally.

"But (the increase in JCI) has great potential to be able to continue to continue in the all time high area," he concluded.