Jakarta. The Jakarta Composite Index (JCI) extended its losing streak on Friday, closing at 6,258.1, down 1.94 percent or 123.4 points, as investors reacted to US economic data, China policy uncertainties, and FTSE rebalancing.

The index remained in negative territory throughout the session, fluctuating between 6,218 and 6,426. Decliners dominated the market, with 476 stocks falling, while 135 advanced and 187 remained unchanged.

JCI has faced sustained pressure since the Indonesia Stock Exchange (IDX) halted trading for 30 minutes on Tuesday after a 5 percent plunge. Analysts attribute the downturn to mass layoffs in key industries ahead of Eid, concerns over impending credit ratings from Fitch, S&P, and Moody’s, and recent downgrades by Goldman Sachs and Morgan Stanley, which have shaken investor confidence.

Pilarmas Investindo Sekuritas cited a combination of global and local factors behind the JCI’s slump. Global sentiment remained fragile following mixed Asian market performance and a weak close on Wall Street.

"Markets are digesting the latest US economic data while navigating uncertainty over President Donald Trump’s tariff policies," Pilarmas noted in a report Friday.

US jobless claims data showed initial claims rising to 223,000 from 220,000 and continuing claims increasing to 1.89 million from 1.87 million. The figures fueled concerns over a weakening outlook amid government spending cuts, interest rate uncertainty, and policy risks.

Investors remained cautious about the Federal Reserve’s monetary policy. "The Fed has reiterated that it is in no rush to cut interest rates further," Pilarmas added, heightening market anxiety over economic projections that signal risks to growth, employment, and inflation.

Closer to home, investor sentiment was clouded by uncertainty over China’s stimulus measures. "The lack of clarity on the timing and scale of Beijing’s latest plans to boost consumption and stabilize property and equity markets has driven investors away from riskier assets," Pilarmas said.

Domestically, index rebalancing by FTSE Russell added to selling pressure. "FTSE’s global index rebalancing today triggered portfolio adjustments affecting Indonesian stocks. Shares removed from the index naturally lose appeal among institutional investors, leading to sell-offs," the brokerage explained.

State-owned enterprises (SOEs) also declined as investors braced for the government’s restructuring of sovereign wealth fund Danantara. "The SOEs Ministry is drafting a regulation to oversee the transfer of SOE shares to Danantara, by the end of March 2025," Pilarmas added.

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