BEI Urges Investors to Remain Rational Amid Geopolitical Tensions
Jakarta – Indonesia’s Stock Exchange (BEI) Acting Chief Executive Jeffrey Hendrik has urged investors to remain rational and always pay attention to fundamental factors when making investment decisions, amid escalating conflict between Iran, Israel and the United States.
The appeal was made as tensions between Iran and Israel, and the United States, intensified, causing stock exchanges across Asia to decline during trading on Monday 2 March, including Indonesia.
“Facing increased uncertainty due to geopolitical escalation occurring at the global level, we urge investors to remain rational and always pay attention to fundamentals,” Jeffrey told the media in Jakarta on Monday.
He reminded investors to adjust their investment strategies while maintaining consideration for each investor’s respective risk tolerance.
During Monday morning trading on 2 March, the Jakarta Composite Index (IHSG) opened lower by 23.95 points or 0.29 per cent to 8,211.31.
Stock exchanges across the Asia-Pacific region also declined during Monday morning trading on 2 March, with Kuwait’s stock exchange temporarily halting trading and the United Arab Emirates closing its equity market on Monday 2 March and Tuesday 3 March.
Middle Eastern tensions reached a peak following large-scale air strikes launched by the United States and Israel against several strategic Iranian targets, including military complexes and facilities believed to be related to Tehran’s missile and nuclear programmes, in an operation designated Operation Epic Fury.
Consequences of this escalation include developments regarding the strategically important Strait of Hormuz shipping route, which represents a critical transit corridor for approximately 20-25 per cent of the world’s crude oil and liquefied natural gas supplies daily.
Closure of the Strait of Hormuz risks destabilising global energy markets, as this route typically facilitates the transit of crude oil and gas reaching tens of millions of barrels daily, and would impact crude oil price conditions, energy supply chains, and shipping insurance costs that could spike sharply.