Jakarta. Jakarta Composite Index (JCI) opened higher on Monday morning, rising 34.76 points, or 0.44%, to 7,970.02, despite trading in the red range of 7,914–7,945 in early minutes.

RTI data showed 1.35 billion shares had changed hands at the open, with trading value reaching Rp 633.88 billion ($37.59 million)  across 74,933 transactions. Gainers outnumbered decliners, with 322 stocks advancing, 154 falling, and 197 unchanged.

Pilarmas Investindo Sekuritas said pressure on equity and bond markets may persist through the week, as momentum remains insufficient to push prices higher even though several stocks are approaching overbought territory. A lingering crisis of confidence continues to weigh on sentiment, keeping domestic market volatility elevated and limiting capital inflows.

The brokerage noted that short-term policy measures are needed to restore investor confidence, reduce volatility in stocks and bonds, and reopen the path for capital inflows.

Moody’s revision of Indonesia’s sovereign outlook to negative has also been mirrored in the outlook for five major banks—BMRI, BBRI, BBNI, BBCA, and BBTN—while maintaining their credit ratings at Baa2. Pilarmas said the shift reflects rising risks to policy credibility stemming from declining predictability and coherence in policymaking and communication over the past year. Any downgrade to the sovereign rating could subsequently pressure bank ratings.

Individually, Mandiri and BRI remain fundamentally strong but face pressure on capital buffers, credit risk, and margins. BNI shows stable capital and funding with relatively lower profitability, while BCA stands out for asset quality, profitability, and liquidity. BTN continues to face structural challenges in asset quality and provisioning despite strong government support.

Pilarmas added that worsening sovereign risk perception could lift banks’ cost of funds, squeezing net interest margins amid tight liquidity competition. Credit growth may also become more selective, particularly in higher-risk segments such as MSMEs and commodities, as risk management tightens.

“However, the fundamental impact is expected to remain limited because major banks maintain strong capital and liquidity, with substantial government backing. Share price volatility is more likely to be driven by macro sentiment and future policy direction than short-term operational performance,” Pilarmas wrote in its research note.

Globally, Wall Street rebounded sharply on Friday as technology stocks recovered earlier losses and bitcoin stabilized. The S&P 500 jumped 2% for its best day since May, the Dow Jones Industrial Average surged 1,206 points, or 2.5%, to surpass 50,000 for the first time, and the Nasdaq Composite climbed 2.2%. Chipmakers led gains, with Nvidia soaring 7.8%, trimming its weekly loss to just over 10%.

Still, consumer sentiment among households without stock holdings remained subdued, according to Surveys of Consumers Director Joanne Hsu.

Asian markets followed Wall Street higher on Monday. Japan’s Nikkei rose 1.59% to 55,130, South Korea’s Kospi surged nearly 4% to 5,299, Hong Kong’s Hang Seng gained 1.56% to 26,982, and China’s Shanghai SSE added 0.92% to 4,103.

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