Jakarta Stock Market Plunges: Sharp Decline shakes Investor confidence
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Teh Jakarta Composite Index (JCI) experienced a critically importent downturn on Thursday, December 19, 2024, closing below 7,000 after a dramatic 130.6-point (1.84%) drop to 6,977.2. This sharp decline sent shockwaves through the market, with several stocks suffering significant losses, some plummeting as much as 33%.
Trading volume reached a substantial 21.7 billion shares, with 1,288,088 transactions totaling 14.1 trillion Indonesian Rupiah. While 97 stocks saw gains, a significant 521 stocks experienced declines, and 170 remained unchanged. This imbalance highlights the widespread nature of the market’s downturn.
Sector-Wide Losses
The market slump affected all sectors, with raw materials experiencing the most significant decline at 3.6%. The health sector followed closely behind with a 2.6% drop, while energy and non-primary consumer goods sectors fell by 2.49% and 2.41%, respectively.Technology, finance, and industrial sectors also saw notable declines, falling by 1.8%, 1.8%, and 1.7%, respectively. Primary consumer goods, property, and infrastructure sectors also experienced losses, with declines of 1.63%, 1.62%,and 1.05%, respectively. Even the transportation sector saw a slight decrease of 0.3%.
Significant Stock Declines
Seven stocks experienced particularly severe losses, each falling more then 15%. Among the hardest hit were PT Jobubu Jarum Minahasa Tbk (BEER), which plummeted 33.3% to IDR 110; PT Krida Network nusantara Tbk (KJEN),down 20.9% to IDR 117; and PT J Resources Asia Pasifik Tbk (PSAB), which saw a 20.6% drop to IDR 238. Other notable declines included PT Lion Metal Works Tbk (LION), down 18.3% to IDR 384; PT Indal aluminum Industry Tbk (INAI), down 16.5% to IDR 106; PT Global Sukses Digital Tbk (DOSS), down 16% to IDR 210; and PT Communication Cable Systems Indonesia Tbk (CCSI), down 15.8% to IDR 254.
The sharp decline in the JCI raises concerns about investor confidence and the overall health of the Indonesian economy.Analysts are closely monitoring the situation to assess the long-term impact of this significant market downturn.
Editor: Jahari Mahardhika ([email protected])
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Jakarta Stock Market plunge: What’s Behind the Dramatic Downturn?
This week, the Jakarta Composite Index (JCI) plummeted, sending shockwaves through the Indonesian market. With a staggering 1.84% drop closing below the crucial 7,000 mark, investors are left wondering what triggered this sudden downturn and what it means for the future of the Indonesian economy.
Senior Editor, World-Today News, sits down with Darius Sasmito, Senior Economist at Nusantara Capital, to discuss the factors behind this market slump and its potential implications.
WTN: Darius, thank you for joining us today. The JCI experienced a dramatic drop. What were some of the key contributors to this critically important downturn?
Darius Sasmito: It’s a pleasure to be here. Several elements played a part in this market decline. Globally, there’s a growing unease surrounding inflationary pressures and the potential for a recession. This global uncertainty often spills over into emerging markets like Indonesia.
WTN: The decline seemed to be felt across all sectors. Can you elaborate on this widespread impact?
Darius Sasmito: That’s right. Essentially, no sector was spared. Raw materials,typically sensitive to global economic fluctuations,were hit hardest. But even sectors less directly tied to global trends like Healthcare and consumer staples saw declines.This suggests broader investor anxieties about the overall economic outlook – both domestically and globally.
WTN: Could you highlight a few specific examples of companies or sectors that felt the brunt of this market drop?
Darius Sasmito: Certainly. Several stocks saw significant drops, exceeding 15% in certain specific cases. Companies like PT Jobubu Jarum Minahasa Tbk in the consumer goods sector and PT J Resources Asia Pasifik Tbk in the mining sector experienced particularly steep losses. these drops, while concerning, are likely indicative of investor nervousness rather then basic issues with these companies.
WTN: What are the potential ripple effects of this market downturn on the indonesian economy as a whole?
Darius Sasmito: It’s too early to definitively say what the long-term impacts will be. Though, a decline in investor confidence can potentially lead to reduced investment and economic slowdown. Closer monitoring of consumer spending and business sentiment in the coming weeks will be crucial in gauging the broader economic impact.
WTN: Looking ahead, what should investors be watching for in the coming weeks and months?
Darius Sasmito: Investors should closely monitor global economic developments, particularly inflation data and central bank policies. Domestically, it will be crucial to pay attention to government policies aimed at bolstering investor confidence and stabilizing the economy.
WTN: Darius, thanks for sharing your valuable insights on this complex situation.
