These were the factors weighing on the IHSG as it closed 124.85 points lower

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed lower on Friday afternoon (6 March) as investors adopted a risk-off stance amid the ongoing conflict between the United States and Israel with Iran. The IHSG closed down 124.85 points or 1.62% to 7,585.68. Meanwhile the LQ45 index of 45 leading stocks fell 11.77 points or 1.49% to 776.04. ‘Investors are inclined to risk-off and defensive. They are avoiding high-risk instruments by liquidating big-cap shares and rotating into safe-haven assets such as gold and the US dollar,’ said Muhammad Wafi, Head of Research at PT Korea Investment And Sekuritas Indonesia (KISI), contacted by ANTARA in Jakarta on Friday (6 March). Wafi explained that the risk-off stance is caused by the escalation of the conflict in the Middle East, as well as high yields on US Treasuries due to expectations that Fed policy rates would stay elevated. From abroad, market participants are awaiting a range of economic data, including US inflation (CPI) and jobs data (NFP), which will be used as a benchmark to gauge the direction of Fed policy, as well as clarity on the resolution/escalation of the Middle East conflict. Domestically, he noted that Fitch Ratings’ cut to Indonesia’s credit outlook to negative triggered depreciation of the rupiah and massive foreign outflows. Meanwhile, traders are awaiting data on foreign exchange reserves, the response of Bank Indonesia (potential BI Rate hike) to stabilise the rupiah, and signs of easing pressure from net sell (foreign selling). Opened weaker, the IHSG remained in negative territory until the close of the first trading session. In the second session, the IHSG remained in the red zone until the close of trading. Based on the IDX-IC sector index, all eleven sectors fell, with the industrial sector the deepest decline at 3.67%, followed by the non-durable consumer goods sector and the energy sector at 3.54% and 2.80% respectively. The stocks with the largest price gains were SKBM, ALKA, TPIA, ICON, and EURO. The stocks with the largest price declines were KOTA, RODA, LAND, ENRG, and ENZO. Trading activity totalled 1,946,837 transactions, with 34.18 billion shares traded worth Rp17.77 trillion. A total of 168 stocks rose, 555 fell, and 94 did not move. Regional Asia stock markets in the afternoon included the Nikkei up 342.69 points or 0.62% to 55,620.80, the Shanghai composite up 15.62 points or 0.38% to 4,124.18, the Hang Seng up 435.94 points or 1.72% to 25,757.28, and the Straits Times up 1.68 points or 0.03% to 4,848.25.