Jakarta. Jakarta Composite Index (JCI) slipped 0.32% on Monday, surrendering intraday gains as volatility near the 7,100 support level capped buying interest. The benchmark index fell 22.97 points to 7,106, after moving within a wide range of 7,106 to 7,230 during the session.

Trading activity remained robust. Volume reached 33.1 billion shares with turnover of Rp 16.5 trillion ($958.7 million) across more than 2.2 million transactions. Gainers outnumbered decliners 408 to 264, while 147 stocks were unchanged.

Pilarmas Investindo Sekuritas said the market’s earlier strength was in line with gains across most Asian bourses, supported by solid economic data. In China, industrial profits grew 15.5% year-on-year in the first quarter of 2026, slightly accelerating from 15.2% growth in January–February.

The brokerage said the data reaffirmed the industrial sector as a key driver of post-pandemic recovery, backed by strong exports. “In addition, producer prices, which have started to reverse after more than three years of deflation, have also provided positive sentiment for market participants,” Pilarmas wrote in its Monday research note.

Domestically, the firm attributed the earlier rebound to buy-on-weakness strategies following last week’s pressure, as concerns over structural weaknesses in the local capital market began to ease.

Positive sentiment was also supported by investment flows. Realized foreign direct investment (FDI), excluding the financial sector and oil and gas, grew 8.5% year-on-year to Rp 250 trillion in the first quarter of 2026.

“The figure improved from 4.3% growth in the fourth quarter of 2025, marking two consecutive quarters of expansion,” Pilarmas said.

On the commodities front, global oil prices climbed to their highest levels in recent periods, driven by stalled peace negotiations between the United States and Iran, raising concerns over potential disruptions in the Strait of Hormuz.

“This condition has triggered concerns over global supply disruptions and inflationary pressures,” the firm added.

Analysts expect the JCI’s movement in the coming week to remain heavily influenced by external factors, particularly the Federal Reserve’s policy direction, rupiah movements against the US dollar, and key global data releases such as US inflation and labor data. Foreign fund flows will also remain a decisive short-term driver, while domestically, government bond yield stability and policy responses will be key to maintaining market confidence.

“The JCI is in a critical phase as it is currently testing a strong support area of 7,100–7,125. If this level fails to hold, further downside toward the next psychological range of 6,950–7,000 is open,” said capital market observer and Republik Investor founder Hendra Wardana over the weekend.

Amid heightened volatility, Hendra advised investors to adopt a more defensive and selective approach. Short-term investors should scale back aggressiveness, focus on quick trades, buying during oversold conditions, and maintain strict cut-loss discipline. Medium- to long-term investors may begin gradual accumulation, rather than deploying capital all at once, in fundamentally strong stocks.

“It is important to keep cash levels high as a buffer against uncertainty, as current conditions are driven more by external factors than domestic fundamentals alone,” he said.

Across Asia, Tokyo’s Nikkei 225 surged 1.4% to 60,537 after hitting an intraday high of 60,903, while South Korea’s Kospi jumped 2% to 6,615.

Hong Kong’s Hang Seng slipped 0.1% to 25,964, while the Shanghai Composite edged up 0.2% to 4,086.

On Wall Street Friday, the S&P 500 rose 0.8% to 7,165, surpassing its previous record set earlier in the week. The Dow Jones Industrial Average slipped 0.2% to 49,230, while the Nasdaq Composite rallied 1.6% to a fresh high of 24,836, driven by strong gains in technology stocks.

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