Jakarta. Indonesian stocks fell 3.64% to close at 4,996 on Monday, extending losses for a third consecutive session as uncertainty over MSCI’s planned market reclassification and IDX tighter trading limits intensified selling pressure.

Trading volume reached 33.9 billion shares, with turnover totaling Rp 25 trillion ($1.38 billion) and transaction frequency exceeding 1.6 million. Declining stocks outnumbered advancing ones, with 656 losers, 100 gainers and 43 unchanged shares.

Pilarmas Investindo Sekuritas said uncertainty surrounding MSCI’s planned reclassification of Indonesia’s stock market remained a key concern for investors.

“Uncertainty surrounding the plan has become one of the factors weighing on market participants’ investment decisions,” Pilarmas wrote in its research note on Monday.

The brokerage also pointed to the Indonesia Stock Exchange’s (IDX) decision to tighten the lower auto-rejection limit, known as ARB, to 7% from 15%. The new limit took effect on Monday and will remain in place until the end of the year to help investors make trading decisions.

Selling pressure also followed administrative fines totaling Rp 2.1 trillion imposed by regulators on Friday against several parties linked to coordinated trading practices and the initial public offerings (IPOs) of three companies.

The domestic market’s decline mirrored broader weakness across Asian exchanges, where technology stocks remained under pressure amid growing doubts about the returns on artificial intelligence (AI) investments.

“Investors are beginning to question whether the massive spending on AI infrastructure can generate adequate returns,” Pilarmas said.

Global developments also weighed on sentiment. Oil prices had climbed above $105 per barrel amid escalating geopolitical tensions in the Middle East and Eastern Europe, raising concerns about inflation. However, prices fell more than 2% on Monday after US President Donald Trump waived sweeping sanctions on Russia, including those targeting Russian energy.

Gold prices, meanwhile, climbed above $4,170 per troy ounce on Monday, extending gains after Federal Reserve Chair Kevin Warsh delivered remarks seen as dovish, prompting investors to scale back expectations of an interest rate increase in October.

Speaking at the International Monetary Fund’s annual meeting in Bangkok on Friday, Warsh offered no indication of the outcome of this month’s Federal Open Market Committee (FOMC) meeting. However, he said higher-than-expected US inflation had not changed his assessment of the country’s economy.

The Fed has since entered its blackout period ahead of its Oct. 27–28 policy meeting. Markets put the probability of interest rates remaining unchanged at around 84%.

Asian markets were mixed on Monday as volatility in technology stocks persisted. South Korea’s benchmark Kospi rose 1.8%, while Japan’s Nikkei 225 fell 0.6%. Hong Kong’s stock market was closed for a holiday, while the Shanghai Composite edged up 0.4%.

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