JCI's Weakness Tuesday As The Fed's Market Expectations Delay Pangkas Interest Rate

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesia Stock Exchange (IDX) Composite Stock Price Index (IDX) on Tuesday afternoon closed lower as market participants expected that the Fed would delay further cuts to its benchmark interest rate.

JCI closed down 33.17 or 0.40 percent to 8,241.91. Meanwhile, the group of 45 leading shares or the LQ45 index fell 2.14 points or 0.25 percent to 841.84.

"Often stick inflation, the Fed has the potential to delay the easing of monetary policy by implementing the Fed Funds Rate (FFR) cut rate. The plan was originally December this year, so it will be postponed in January next year," said Mirae Asset Sekuritas Senior Investment Information Nafan Aji Gusta, quoted by Antara, in Jakarta, Tuesday, November 4.

At the Federal Open Market Committee (FOMC) meeting on October 29, 2025, the Fed cut the benchmark interest rate by 25 basis points (bps) to around 3.75-4 percent.

However, Fed Chairman Jerome Powell said there was no certainty for further cuts, which is closest to the Fed again holding a FOMC meeting on December 9-10, 2025.

In addition, from abroad, Nafan said the negative sentiment that affected the weakening of the JCI was the dynamics of the United States (US) government shutdown which is still continuing, and has the potential to become the longest government shutdown in US history.

Domestically, he said negative sentiment was the lack of positive catalysts from domestic macroeconomic data that could provide positive impact on the JCI.

From a geopolitical perspective, according to him, geopolitical escalation also affects the behavior of market participants to behave more prudently.

It opened higher, the JCI was at home in positive territory until the closing of the first session of stock trading. In the second session, the JCI moved to the red zone until the closing of stock trading.

Based on the IDX-IC Sectoral Index, one sector has strengthened, namely the industrial sector which has decreased by 2.43 percent.

Meanwhile, ten sectors weakened, namely the property sector fell at the bottom by 2.43 percent, followed by the raw goods sector and the health sector which fell by 1.96 percent and 1.17 percent, respectively.

The stocks that experienced the largest strengthening were CINT, FPNI, PTSP, ATIC, and UVCR. Meanwhile, the stocks that experienced the largest weakness were KBLV, RISE, KDTN, ASLI, and AEGS.

The share trading frequency was recorded at 2,344,670 transactions with 28.53 billion shares trading worth IDR 19.43 trillion. A total of 207 stocks rose, 439 stocks decreased, and 165 did not move in value.

Asian regional stock markets this afternoon, among others, the Nikkei index weakened 840.34 points or 1.60 percent to 51,571.00, the Hang Seng index weakened 205.96 points or 0.79 percent to 25,952.40, the Shanghai index weakened 16.33 points or 0.41 percent to 3,960.19, and the Strait Times index weakened 26.32 points or 0.59 percent to 4,418.01.