Jakarta Composite Index (JCI) Closes Higher Following Formation of New Cabinet (Monday, October 21, 2024)

The Jakarta Composite Index (IHSG) closed up 12.52 points, or 0.16%, to 7,772.59 points at the end of trading on Monday (21/10/2024).

This increase follows six consecutive days of gains last week.

According to Antara, several regional Asian stock exchanges strengthened. This strengthening coincided with gains on US stock exchanges and the market's response to the decision by the Central Bank of China.

“[The Central Bank of China], continuing its efforts to revive the economy, cut the one-year and five-year Loan Prime Rate (LPR) by 25 basis points (bps), bringing them down to 3.1% and 3.6% respectively,” stated the research team at Pilarmas Investindo Sekuritas in their Jakarta report on Monday (21/10/2024).

The Pilarmas Investindo Sekuritas research team added that the one-year LPR affects corporate loans and most household loans in China, while the five-year LPR serves as a benchmark for mortgage interest rates.

Market players viewed the central bank's decision as a supportive measure aimed at bolstering the world's second-largest economy, which is facing a prolonged property crisis and weak consumer sentiment.

Domestically, there was the inauguration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka, followed by the announcement of the Red and White Cabinet ministers.

This clearly indicates that the new government is taking swift action, and the cabinet composition has generated positive vibes.

The research team reasoned that this is because several of the chosen ministers are considered competent, and some are from the previous government's cabinet, suggesting a continuation of development agendas.

"This new government offers hope for strengthening national development across various sectors, leading Indonesia towards a brighter future," said the research team.

Based on the IDX-IC Sectoral Index, six sectors saw gains today. The finance sector led with a 1.63% increase, followed by the technology and property sectors, which rose by 1.01% and 0.79% respectively.

Meanwhile, five other sectors experienced corrections. The basic materials sector fell the most, by 1.54%. This was followed by the energy and transportation and logistics sectors, which fell by 1.21% and 0.88% respectively.

According to RTI Business data, the frequency of stock trades on the domestic exchange today totaled 1.41 million transactions.

A total of 25.88 billion shares changed hands, with a total transaction value of Rp10.56 trillion.

303 stocks closed higher today, 270 stocks weakened, and 228 stocks were stagnant.

Today's top gainers were INPC, which soared 30.56%, followed by WIRG and JARR, which rose 21.74% and 18.63% respectively.

On the other hand, TNCA was the top loser, plunging 11.06%, followed by LPPS and MARI, which fell 9.33% and 7.58% respectively.

Meanwhile, the Nikkei index fell 0.07% to 38,954.60; the Hang Seng index fell 1.57% to 20,478.46; the Shanghai index rose 0.20% to 3,268.11; and the Straits Times index fell 0.67% to 3,614.58.

(Also read: IHSG Continues to Strengthen for 6 Consecutive Days (Friday, October 18, 2024))