Jakarta Composite Index Faces Downward Pressure Amid Renewed Strait of Hormuz Closure

The Jakarta Composite Index (JCI) managed a slight recovery on Friday, closing at 7,634.00, a gain of 0.17% or 12.62 points. This modest uptick followed a two-day decline where the index shed over 70 points, leaving the market hovering just above the 7,630-point plateau. The brief stability was supported by a surge in U.S. equities, where the Dow Jones Industrial Average jumped 1.79% to 49,447.43 and the NASDAQ rose 1.52% to 24,468.48. This Wall Street optimism was initially sparked by reports that Iran had reopened the Strait of Hormuz following a 10-day ceasefire between Israel and Lebanon, which caused West Texas Intermediate (WTI) crude prices to plummet 10.58% to $84.11 per barrel. However, the outlook for Asian markets has turned gloomy heading into the new week. Reports indicate the Strait of Hormuz was shut down again over the weekend, erasing the temporary relief and reigniting global supply-chain fears. This development is expected to place significant pressure on Asian bourses during Monday's opening. Friday's JCI activity was mixed across sectors. Resource stocks provided support, with Astra International gaining 2.82% and Vale Indonesia rising 1.85%. In the banking sector, Bank Danamon Indonesia spiked 3.23%, while Bank Central Asia retreated 1.53%. Analysts expect the JCI to face renewed selling pressure as geopolitical instability in the Middle East weighs on global risk appetite.