Jakarta. Indonesian stocks fell below the psychologically important 6,000 level on Monday, shedding 118 points, or 1.94%, to 5,975 at midday trading on the Indonesia Stock Exchange (IDX), as worsening technical indicators and renewed Middle East tensions heightened the risk of further losses.

BRI Danareksa Sekuritas maintained a bearish outlook, noting that the Jakarta Composite Index (JCI) remained below its 20-day moving average (MA20) of 6,216, suggesting the downtrend was not yet over.

The brokerage identified 5,850 as the nearest support level. A break below that threshold could trigger a deeper correction, it said in a market review on Monday.

The moving average convergence divergence (MACD) indicator, which tracks price momentum, also continued to signal negative momentum. A rebound is likely to remain limited unless the index breaks above the 6,154–6,214 range, the brokerage said.

Beyond technical pressures, BRI Danareksa Sekuritas flagged rising geopolitical risks following Houthi attacks on Riyadh, which fueled concerns about a broader escalation of the Middle East conflict and potential US involvement.

The tensions could increase oil price volatility and prompt investors to reduce their exposure to riskier assets.

MNC Sekuritas Head of Retail Research Herditya Wicaksana said Monday's decline was in line with the technical outlook outlined in the firm's morning report. Renewed conflict in the Middle East had added to the pressure on Indonesian stocks, he said.

“We had already outlined this potential JCI decline in our technical report this morning. Meanwhile, the Middle East conflict has flared up again following the Houthi attack on Saudi Arabia, with the US expected to assist Saudi Arabia,” Herditya, commonly known as Didit, said on Monday.

Investors were also awaiting inflation data from the United States and China scheduled for release on Oct. 14, 2026. The figures are expected to offer further clues about the global economic outlook and the direction of monetary policy.

Didit added that rumors of potential MSCI sanctions against several listed companies were another concern weighing on market sentiment. However, the rumors remained unconfirmed and should not be treated as an official decision without an announcement from the relevant parties.

The combination of geopolitical uncertainty, upcoming economic data and speculation surrounding MSCI left investors cautious about their stock market positions.

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