PORTALJABAR, BANDUNG CITY - We often hear, "The Jakarta Composite Index (JCI) rose a hundred points today" or "The JCI closed lower at 7,950." The JCI's fluctuations are a simple reflection of the pulse of the economy and the human psychology that drives it.

The Jakarta Composite Index (JCI) reflects the movement of all stocks traded on the Indonesia Stock Exchange (IDX). If the stock market were likened to a traditional market, then the JCI would be the average price of all goods traded there.

When buyers are in abundance and many want to own an item, prices will rise. Conversely, when sellers outnumber buyers, prices will fall.

"The same principle applies in the stock market. When many investors are optimistic and rush to buy shares, the JCI will rise. However, when negative sentiment arises and investors choose to sell, the JCI will also experience a correction," said Achmad Dirgantara, Head of the West Java Representative Office of the Indonesian Stock Exchange (BEI).

According to Achmad, the JCI's movements are influenced not only by economic figures but also by human emotions. Investors don't always make decisions based on pure data. They are also driven by fear and hope.

"When positive news emerges, such as strong economic growth, stable interest rates, or rising profits from major companies, market participants' confidence increases. They buy stocks, believing the economic future will be bright, and the JCI rises," said Achmad.

"Conversely, when negative news is heard, such as soaring inflation, political turmoil, global conflict, or a recession in a major country, anxiety creeps in. Investors become wary, even panicking, and choose to sell shares to save their funds. As a result, the JCI is under pressure and weakens," he added.

The simplest way to deal with the ups and downs of the JCI is to change your perspective on investing. When the JCI falls, we buy more stocks, analyzing our needs at lower prices. When it rises, the value of our investments grows.

"This simple principle is known as cost averaging, and it has proven effective in dealing with market fluctuations," Achmad concluded. (no)