June 2, 2026 | 11:17 pm
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the beginning of this week's trading, on Tuesday, June 2, 2026, closed at the level of 6,195.4, up by 1.11 percent compared to the previous day's closing. JCI movements this week will be influenced by the stability of the rupiah exchange rate.Referring to Indonesia Stock Exchange (IDX) data until the end of the day's session, the total value of stock trading transactions until the last session reached Rp25.47 trillion. The trading frequency was recorded at 2.57 million times, with a trading volume of 31.24 billion shares.During the previous week, or on Friday, May 29, 2026, the stock index closed lower at 6,127. Equity Analyst at PT Indo Premier Sekuritas (IPOT), David Kurniawan, stated that during the JCI plunge in May, foreign investors' outflow amounted to Rp19.4 trillion on the regular market.According to David, the decline and the outflow of foreign investors were influenced by global and domestic sentiment. From the global side, geopolitical tension shows signs of easing, but on the domestic side, the rupiah has weakened by 6.6 percent compared to the beginning of the year, or year-to-date.Entering June 2026, David said that investor attention is expected to shift from MSCI rebalancing towards Indonesian authorities to maintain the stability of the rupiah and restore the confidence of foreign investors. Rupiah stability will become the most crucial factor in determining the future direction of the market.Although Bank Indonesia has raised the interest rate to 5.25 percent to dampen external pressures, the market will still monitor whether this policy is effective in restraining rupiah volatility and reducing the pressure of capital outflows."If the rupiah can show stabilization in the coming weeks, market sentiment is likely to improve and open the way for the return of foreign funds to the stock and domestic bond markets," he said.Apart from the movement of the rupiah, David stated that the direction of US monetary policy will also be the main concern of market players. The Federal Open Market Committee (FOMC) meeting in mid-June has the potential to be the biggest catalyst this month. Investors will await the latest signals regarding the direction of interest rates and the prospects for US inflation.He explained that the stance of the US central bank or the Federal Reserve, which still tends to be hawkish, has the potential to maintain the strength of the US dollar and limit the flow of capital to emerging markets. On the other hand, if there are indications that US inflation pressures are beginning to ease and the possibility of a rate cut becomes more open in the second half of this year, risky assets, including the Indonesian stock market, may gain positive sentiment.Read: JCI Closes Lower as Market Volatility PersistsClick here to get the latest news updates from Tempo on Google News
