Jakarta. Jakarta Composite Index (JCI) tumbled 2% or 144 points to 6,956 on Thursday, dragged by escalating US–Iran tensions, rising non-subsidized fuel prices, and a weakening rupiah.

Market activity remained heavy, with 48.1 billion shares traded, generating Rp 21.7 trillion ($1.2 billion) in turnover across more than 2.6 million transactions. Decliners dominated the market, with 576 stocks falling against 133 gainers, while 105 were unchanged.

Pilarmas Investindo Sekuritas said the domestic equity market weakness was closely tied to rising global uncertainty, as most Asian markets moved into negative territory following a broadly weaker close on Wall Street.

“Market concerns are increasing following reports of a prolonged US blockade plan against Iran, which is driving oil prices higher and dampening investor appetite for risk assets,” Pilarmas wrote in its research on Thursday.

Despite the broader sell-off, several stocks posted strong gains. Sidomulyo Selaras (SDMU) surged 28.57%, DFI Retail Nusantara (HERO) jumped 24.74%, Adhi Karya (ADHI) rose 16.48%, and Indospring (INDS) climbed 15.79%.

On the losing side, Formosa Ingredient (BOBA) dropped 14.91%, Perdana Bangun Pusaka (KONI) fell 14.53%, Malindo Feedmill (MAIN) declined 14.50%, and Sentral Mitra Informatika (LUCK) slid 13.18%.

Pilarmas added that the US Federal Reserve’s decision to hold interest rates for a third consecutive meeting also contributed to cautious market sentiment.

“However, differing views among several Fed officials have added uncertainty over the future policy direction,” the firm noted.

Domestically, concerns over inflation following the increase in non-subsidized fuel prices further pressured the index. The rupiah’s weakness, driven by fiscal pressures, compounded negative sentiment in the market.

Pilarmas said investors were also holding back ahead of key economic data releases next week, particularly April inflation figures.

“Market participants prefer to adopt a wait-and-see stance amid a combination of unfavorable global and domestic sentiment,” Pilarmas wrote.

Across Asia, markets mostly declined. Tokyo’s Nikkei 225 fell 1% to 59,284, Seoul’s Kospi dropped 1.38% to 6,598, and Hong Kong’s Hang Seng slipped 1.28% to 25,776. Shanghai’s SSE, however, edged up 0.11% to 4,112.

Overnight on Wall Street, the S&P 500 ended nearly flat, slipping less than 0.1% a day after retreating from its latest record high. The Dow Jones Industrial Average lost 280 points, or 0.6%, while the Nasdaq Composite inched up by less than 0.1%.

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