Jakarta Composite Index Slumps Amid Middle East Escalation and Oil Surge

The Jakarta Composite Index (JCI) continued its downward trajectory on Thursday, marking the fourth consecutive session of losses. The index tumbled 163.01 points, or 2.16%, to close at 7,378.61, as investors reacted to a volatile global landscape and a soft forecast for Asian markets. The sell-off is largely attributed to escalating tensions in the Middle East. The closure of the Strait of Hormuz and recent directives from U.S. President Donald Trump regarding naval engagement in the region have sparked fears of a wider conflict. This geopolitical instability pushed West Texas Intermediate (WTI) crude prices up 2.68% to $95.45 per barrel. In Jakarta, the decline was broad-based across several key sectors. Major financial institutions such as Bank Mandiri and Bank Rakyat Indonesia saw drops of 2.53% and 2.47%, respectively. Industrial and resource stocks were also hit hard, with Semen Indonesia plunging 5.44% and Astra International falling 4.17%. Conversely, energy-linked stocks like Energi Mega Persada surged 10.58% on the back of rising oil prices. The JCI's performance mirrored a weak lead from Wall Street, where the Dow, NASDAQ, and S&P 500 all finished in the red. Market sentiment was further dampened by IBM's failure to raise full-year guidance despite a first-quarter earnings beat, triggering profit-taking across the tech sector. Analysts expect continued pressure on Asian markets as long as oil supply concerns remain elevated and geopolitical instability persists in the Persian Gulf, suggesting a period of continued consolidation for the Indonesian bourse.