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IDX Composite falls 0.19% on Iran-Israel tension, potential Fed cuts
The IDX Composite ended Monday's trading 0.19 percent lower amid rising Iran-Israel tension and speculation swirling around the Fed's potential rate cuts.
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A woman walks on March 13, 2024 past an electronic display showing stock movements on the Indonesia Stock Exchange (IDX). (Antara/Akbar Nugroho Gumay)
The Indonesia Stock Exchange (IDX) Composite fell by 13.49 points or 0.19 percent to close on Monday at 7,073.82.
The index passed the 7,000 mark, despite predictions suggesting a potential drop to 6,600 to 6,800 due to the rising geopolitical tension between Iran and Israel. Market participants were also concerned about potential interest rate cuts this year by the United States Federal Reserve.
Arwendy Rinaldi Moechtar, head of equity trading at Mitra Andalan Sekuritas, said the IDX Composite was entering correction territory.
"The [IDX Composite] is entering a correction phase because Dow Jones is experiencing a correction. There has been no correction since October [2023]," said Arwendy, as quoted by CNBC Indonesia.
He added that the index had not entered a correction since November last year and was facing downward pressure from the global market.
Arwendy estimated the closest support level for the index at 6,900 to 7,000. If it fell below 7,000, the Composite’s next support level was at 6,750.
The bourse’s total trading volume on Monday reached Rp 11.6 trillion (US$713.39 million).
By the closing bell, 272 stocks had risen and 306 had fallen, while 204 stocks remained unchanged. Five out of 11 sectoral indexes strengthened as six others slipped into the red zone, following the weakening index.
The primary consumer goods sector recorded the largest rise with 0.90 percent, followed by the property sector increasing 0.79 percent and the technology sector, which rose 0.30 percent.
The deepest decline of 0.6 percent occurred in the energy, transportation and infrastructure sectors, followed by the non-primary consumer goods sector slipping 0.3 percent and the industrial sector 0.2 percent.
The LQ45 index, which tracks the performance of the top 45 stocks by market capitalization, jumped 0.12 percent to 921.46 on Monday.
PT XL Axiata (EXCL) was the best-performing LQ45 stock, soaring 5.02 percent. PT Industri Jamu dan Farmasi Sido Muncul (SIDO) followed with a 3.65 percent rise, and then PT Harum Energy (HRUM) with 3.49 percent.
Meanwhile, the top losers in the LQ45 were PT Medco Energi Internasional (MEDC) with a 4.82 percent decrease, PT Merdeka Copper Gold (MDKA) with 4.29 percent and PT AKR Corporindo (AKRA) with a 2.71 percent decrease.
Other exchanges in Asia experienced mixed movements, with Tokyo’s Nikkei in and Hong Kong’s Hang Seng both strengthening, along with Singapore’ Straits Times Index. In contrast, the Shanghai Composite saw a market correction of 0.5 percent.
