The Jakarta Composite Index opened firmer on Monday, 4 May 2026, as regional sentiment improved, but analysts said the benchmark still needed a decisive break above 7,150 before a broader recovery could be confirmed. BNI Sekuritas retail research head Fanny Suherman said the index had scope for a technical bounce towards 7,000-7,050, while warning that the market remained vulnerable to renewed selling pressure.

The opening gain came after a volatile stretch in which the index had been under pressure from foreign outflows and weaker risk appetite. According to market commentary cited by local outlets, the benchmark had fallen more than 2% in the previous session and was still digesting a four-day correction of roughly 5.7%, leaving traders focused on whether the 7,000 level could now act as a psychological floor.

Sentiment in Jakarta was helped by stronger overseas markets. Wall Street ended mixed on Friday, but the S&P 500 and Nasdaq Composite both closed at record highs, supported by robust corporate earnings and a decline in crude prices. In Asia, Japan’s Nikkei 225 and Australia’s S&P/ASX 200 also finished higher, while reports noted that the Kospi in South Korea reached a record, reinforcing the impression of a broader regional rebound.

Still, the backdrop remained cautious. The Institute for Supply Management said US factory activity improved in April, but a measure of prices paid climbed to its highest level in four years, a reminder that inflation risks have not disappeared. Traders were also weighing geopolitical tensions and oil-market volatility, even as some reports pointed to easing supply concerns. For now, technical levels remain the key guide: support is seen around 6,850-6,900, with resistance clustered near 7,000-7,050 and a more important hurdle at 7,150.

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Source: Noah Wire Services