JABAR EKSPRES – The Composite Stock Price Index (JCI) of the Indonesia Stock Exchange (IDX) on Wednesday (5/31) has the opportunity to move sideways (flat) in line with the weakening of the majority of global stock markets.
JCI opened up 18.42 points or 0.28 percent to 6,654.8. Meanwhile, the group of 45 leading stocks or the LQ45 Index rose 4.08 points or 0.43 percent to 947.18.
“JCI will have a holiday on June 1 and 2, 2023, this also affects the cautious attitude of market players. JCI has the opportunity to move sideways today,” said the Lotus Andalan Sekuritas Research Team in its study in Jakarta.
The weakening of the majority of global indices also provided negative sentiment, market players in Indonesia still seem not confident in the potential debt ceiling agreement between US President Joe Biden and US House Speaker Kevin McCarthy.
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The latest news is that Joe Biden has reached an agreement with Kevin McCarthy to suspend the US debt ceiling until January 1, 2025.
The long negotiations between the White House and congressional leaders raised concerns among investors that a default could occur.
Meanwhile, US markets moved mixed on Tuesday (30/05), as investors considered the possibility of congress passing a tentative agreement on the US debt limit.
In addition, investors are also paying attention to the interest rate policy that will be taken by the Fed.
Although US economic data showed signs of weakening, the Fed is likely to raise interest rates by 25 bps at its June 14 meeting, which is in line with its hawkish view before the last FOMC announcement.
On the other hand, market participants are also paying attention to China’s manufacturing conditions which still remain at the contraction level. Based on consensus, China’s manufacturing will be at 49.4.
Asian regional stock markets this morning include the Nikkei Index weakened 236.00 points or 0.75 percent to 31,092.19, the Hang Seng Index weakened 300.21 points or 1.61 percent to 18,295.56, and the Straits Times index weakened 20.68 points or 0.65 percent to 3,166.88.
