JCI Drops After Choppy Session as Energy Market Turmoil Weighs on Global Sentiment

JCI Drops After Choppy Session as Energy Market Turmoil Weighs on Global Sentiment

Jakarta. Indonesia’s benchmark stock index closed lower on Thursday after a volatile trading session, as global energy market tensions weighed on sentiment despite supportive domestic developments.

Jakarta Composite Index (JCI) fell 27 points, or 0.37%, to close at 7,362, after moving within a wide range of 7,323–7,436 throughout the day.

Trading activity remained heavy, with 26.62 billion shares exchanged and total turnover reaching Rp 13 trillion ($769.29 million) across more than 1.6 million transactions. Decliners dominated the session with 461 stocks falling, compared with 211 gainers, while 149 shares closed unchanged.

Among the biggest gainers, Ace Oldfields (KUAS) surged 29.89%, followed by Alakasa Industrindo (ALKA) which advanced 24.57%. Cipta Selera Murni (CSMI) jumped 20%, while Kino Indonesia (KINO) climbed 17.06%.

On the losing side, Hotel Fitra International (FITT) tumbled 14.90%, Fast Food Indonesia (FAST) declined 14.57%, Danasupra Erapacific (DEFI) dropped 14.55%, and Indospring (INDS) slipped 14.40%.

Domestic sentiment received some support from expectations surrounding the selection of new leadership at Indonesia’s Financial Services Authority (OJK). The leadership decision was scheduled to be finalized through a plenary session of the House of Representatives on Thursday.

Pilarmas Investindo Sekuritas said the transition at the financial regulator has raised hopes of accelerating governance reforms in the financial sector, which could strengthen transparency and restore investor confidence in Indonesia’s capital market.

“The market appears to expect a return of investor confidence in the domestic capital market following the appointment of new members to strategic positions at the OJK,” Pilarmas wrote in a research note on Thursday.

Despite the domestic optimism, regional markets across Asia moved lower as investors remained cautious amid renewed volatility in global energy markets.

Geopolitical tensions involving the United States, Israel, and Iran pushed oil prices sharply higher, fueling fresh concerns about global inflation risks. Earlier, Brent crude rose about 5.84% to $92.93 per barrel, while West Texas Intermediate (WTI) climbed 5.87% to $88.31 per barrel.

Pilarmas said the spike followed attacks on several vessels around the Strait of Hormuz, intensifying fears of disruptions to global energy supply. Since the escalation of tensions involving Iran, at least 14 ships have reportedly been targeted in the Gulf region.

“The surge in energy prices increases inflation risks and could reduce the likelihood of the Federal Reserve cutting interest rates in the near term,” Pilarmas said.

The market was also watching renewed protectionist trade policies from US President Donald Trump, with Washington reportedly launching a new trade investigation under Section 301 targeting several trading partners, including China and Southeast Asian economies such as Indonesia, Malaysia, and Vietnam.

Oil markets remained highly volatile. Brent crude briefly climbed above $100 per barrel early Thursday, after earlier surging close to $120 amid escalating conflict involving Iran and attacks on commercial shipping near the Strait of Hormuz, a critical route that handles roughly a fifth of global oil trade.

In response to the supply shock, the International Energy Agency (IEA) announced the release of 400 million barrels of emergency oil reserves, the largest in its history. The United States also plans to release 172 million barrels from its Strategic Petroleum Reserve next week to help stabilize prices.

Regional equity markets reflected the cautious mood. Tokyo’s Nikkei 225 dropped 1% to 54,452, South Korea’s Kospi fell 0.5% to 5,583, and Hong Kong’s Hang Seng declined 0.7% to 25,716.

The Shanghai Composite slipped 0.1% to 4,129.10, while Australia’s S&P/ASX 200 retreated 1.3% to 8,629.00.

On Wall Street overnight, US stocks were little changed after recent market swings driven by the Iran conflict. The S&P 500 edged 0.1% lower, the Dow Jones Industrial Average fell 0.6% to its lowest level this year, and the Nasdaq Composite inched 0.1% higher.

Tags: Keywords: