TEMPO.CO, Jakarta – Indonesia's benchmark stock index closed sharply higher on Friday, July 3, while the rupiah strengthened against the U.S. dollar, supported by improving market sentiment and a weaker U.S. dollar index.
The Jakarta Composite Index (JCI), known locally as the Composite Stock Price Index (IHSG), rose 2.28 percent to close at 5,875.7, according to data from the Indonesia Stock Exchange (IDX).
The rally was accompanied by total transaction value of Rp10.54 trillion (US$649 million), with 1.38 million trades and 18.15 billion shares changing hands.
The JCI remained in positive territory throughout the trading day. At the close of the first session, the index had already gained 2.46 percent to 5,886.01.
All sectoral indices ended the day in positive territory. The industrial sector led the gains, climbing 3.61 percent, followed by the basic materials sector, which advanced 3.24 percent.
Rupiah Extends Gains
The rupiah also strengthened in the spot market, gaining 32 points, or 0.18 percent, to close at Rp17,963 per U.S. dollar.
Currency analyst Ibrahim Assuaibi expects the rupiah to fluctuate next week but remain on an upward trend.
"The rupiah is expected to move within the range of Rp17,910 to Rp17,970 per U.S. dollar," Ibrahim said in his regular market analysis on Friday.
Global Sentiment Supports Markets
According to Ibrahim, Friday's gains were in line with the weakening of the U.S. dollar index, while investors continued to monitor developments in negotiations between the United States and Iran.
He said U.S. President Donald Trump's statement that Iran had agreed to "almost everything" sought by Washington boosted investor confidence that the talks were making progress.
However, Ibrahim noted that Iran has rejected a proposal to relinquish its claims over the Strait of Hormuz.
"Mixed signals continue to keep geopolitical risks in focus for traders, even as concerns about direct disruption to Gulf crude oil supplies continue to ease," Ibrahim said.
Read: Rupiah Weakens Amid Domestic Sentiment Pressure
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