Jakarta. Indonesia’s stock market capitalization shrank by Rp 211 trillion ($12.4 billion) over the past week, as escalating geopolitical tensions linked to the conflict in Iran and rising global oil prices weighed on investor sentiment.

The latest market retreat underscores the sensitivity of Indonesian equities to global macroeconomic and geopolitical developments, particularly fluctuations in energy prices and investor risk appetite.

The Indonesia Stock Exchange (IDX) recorded a total market capitalization of Rp 12,305 trillion ($723.7 billion) at Thursday’s close, down 1.69% from Rp 12,516 trillion ($736.3 billion) at the end of March 30.

Over the same period, the benchmark index fell 0.99% to close at 7,026.78 points.

Trading activity remained relatively robust, with average daily transaction frequency rising 3.08% to 1.78 million trades from 1.73 million in the previous week, indicating sustained market participation.

However, average daily trading volume declined 8.62% to 25.87 billion shares, compared with 28.31 billion shares a week earlier.

A sharper drop was seen in average daily transaction value, which fell 36.69% to Rp 14.77 trillion from Rp 23.33 trillion, reflecting weaker capital inflows.

Foreign investors continued to post net outflows of Rp 813.51 billion during the week. Year-to-date, foreign investors have recorded net sales of Rp 33.83 trillion.