JAKARTA – Jakarta Composite Index (JCI) strengthened 4.12% in Monday’s (15/5) trading session, following the peace agreement between the United States (US) and Iran.

The gains were also seen in several stock indices across emerging markets in the Asia-Pacific region, with the Philippines’ PCOMP leading with a 6.14% increase and KOSPI rising 5.20%.

Phintraco Sekuritas analysts said JCI strengthening was also supported by global crude oil prices, which returned to trading below USD 90 per barrel following the possibility that the US and Iran would soon reopen the Strait of Hormuz.

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“The decline in global crude oil prices is a positive factor as it eases inflationary pressure and the potential widening of the state budget deficit,” Phintraco analysts explained in a note submitted to investors.

Technically, Phintraco analysts said JCI successfully closed above the MA20. Meanwhile, MACD indicator continued to form a positive histogram increase, although the Stochastic RSI has the potential to form a Death Cross in the overbought area.

Most sectoral indices moved higher, with the largest increase recorded by the basic materials sector at 7.26%. Meanwhile, the healthcare sector was the only sector to decline, although only slightly, falling 0.67%.

In the foreign exchange market, most Asia-Pacific emerging market currencies also strengthened against the US dollar. The rupiah recorded the largest gain at 0.85% and remained at IDR 17,708 per USD, although it is still down around 6% since the beginning of this year. (KR/ZH)

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