Jakarta.  The Jakarta Composite Index (JCI) jumped at the opening on Thursday, rising 5.8 points to 8,034, setting a fresh all-time high.

The benchmark index moved within a range of 8,025 to 8,068, with trading volume reaching 3.57 billion shares and turnover of Rp1.7 trillion. A total of 225,380 transactions were recorded, with 238 stocks advancing, 211 declining, and 210 remaining unchanged.

Brokerage firm Phintraco Sekuritas said the rally was fueled by interest rate cuts from the US Federal Reserve and Bank Indonesia (BI). BI lowered its policy rate by 25 basis points to 4.75 percent in its latest monetary policy meeting, defying consensus forecasts that it would keep rates steady at 5 percent.

The decision marked BI’s fifth rate cut this year, bringing the benchmark down by a cumulative 125 basis points, its lowest level since October 2022. 

The Federal Reserve cut its key interest rate by a quarter-point on Wednesday and projected it would do so twice more this year as concern grows at the central bank about the health of the nation's labor market.

The move is the Fed’s first cut since December and lowered its short-term rate to about 4.1 percent, down from 4.3 percent. Fed officials, led by Chair Jerome Powell, had kept their rate unchanged this year as they evaluated the impact of tariffs, tighter immigration enforcement, and other Trump administration policies on inflation and the economy.

Global markets offered a mixed picture overnight. On Wall Street, the S&P 500 slipped 0.1 percent but stayed near record highs, while the Dow Jones Industrial Average gained 0.6 percent and the Nasdaq Composite fell 0.3 percent. Investors largely shrugged off the Fed’s widely anticipated rate cut, focusing instead on its signal that more easing could follow in the months ahead.

Asian markets were mostly lower in early trade, with Japan’s Nikkei 225 down 0.2 percent after data showed a sharp drop in exports to the United States.

Read More: Jakarta Stocks Hits 8,025 After BI Rate Cut, Cabinet Reshuffle

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