Oil and Gas Shares Surge Sharply While Main Index Collapses – Why?

Jakarta – A series of oil and gas sector shares surged significantly on Monday amid the Indonesian Composite Index (IHSG) collapsing more than 2%.

At 09:21 Western Indonesia Time, the most pronounced gains occurred in PT Elnusa Tbk (ELSA), which jumped 13.53% to 965. PT Energi Mega Persada Tbk (ENRG) strengthened 9.66% to 1,930, followed by PT Medco Energi Internasional Tbk (MEDC), which rose 8.99% to 1,880.

Additionally, PT ESSA Industries Indonesia Tbk (ESSA) appreciated 5.43% to 680, whilst PT Perusahaan Gas Negara Tbk (PGAS) gained 2.51% to 2,450.

The IHSG opened significantly lower, falling 142.58 points or 1.73% to 8,092.90 at market open on Monday 2 March 2026. One minute after opening, the index declined further, dropping more than 2%.

Across the broader market, 556 shares fell, 56 rose, and 103 remained unchanged. Morning transaction volume reached Rp 708.27 billion, involving 976.34 million shares in 104,578 transactions.

Heightened military tensions between the United States and Israel against Iran triggered a shift in global fund flows towards commodity-based assets and safe-haven instruments.

Escalation of the Middle Eastern conflict, including Iran’s move to restrict traffic through the Strait of Hormuz—which handles approximately one-fifth of global oil supplies and substantial volumes of natural gas—heightened market concerns regarding disruptions to global energy supply chains and drove increases in several strategic commodity prices.

Brent crude oil prices recently touched US$72 per barrel, approaching an eight-month high. The surge followed increased concerns over energy distribution disruptions due to the conflict, particularly given that the Strait of Hormuz represents a vital global oil trading route.

Rising oil prices could serve as a positive catalyst for oil and gas stocks, particularly for companies with exposure to production and sales tied to global market prices.

As long as energy prices remain elevated, the potential for improved revenues and margins represents a distinct attraction for market participants.