On Thursday, the Jakarta Composite Index recorded a sharp decline of 85.89 points, equivalent to 1.06 percent, closing at 8,040.67. After posting gains for two consecutive sessions, the index is now hovering just above the 8,040-point threshold, with many investors expecting little movement on Friday. The broader global market mood is subdued ahead of the highly anticipated U.S. inflation data release, which could shape investor sentiment across Asian bourses.
The JCI's decline was driven by weak performances in key sectors, particularly financials and construction materials. Among the major banks, Bank Rakyat Indonesia dropped 2.40 percent, marking one of the steepest losses. Bank Negara Indonesia remained flat, but Aneka Tambang plunged sharply by 8.65 percent. Semen Indonesia, a key cement producer, declined 1.04 percent, and Timah, involved in tin production, tumbled 3.77 percent, contributing significantly to the index's underperformance.
Wall Street Weakness
The U.S. stock markets also delivered a weak performance, with all three major benchmarks ending the day in negative territory. The S&P 500 dropped 33.25 points or 0.50 percent to 6,604.72, and the NASDAQ lost 113.16 points, or 0.50 percent, closing at 22,384.70. These declines indicate continued investor hesitation and risk-averse behavior ahead of major economic announcements.
The broader market weakness was influenced by ongoing concerns about the artificial intelligence sector's growth potential and the future of interest rates. Recent upbeat U.S. Later Thursday, the Commerce Department will publish its personal income and spending report for August, which includes the core inflation metrics closely followed by the Fed.
Amid market volatility, crude oil prices moved slightly higher, driven by expectations of possible U.S. sanctions on Russian oil exports, which could disrupt supply. The slight gain shows traders are hedging against potential supply-side disruptions as geopolitical tensions remain a key factor in the energy markets.