Jakarta.  Jakarta Composite Index extended its decline on Monday, slipping back below the 7,000 level as geopolitical tensions in the Middle East and MSCI-related concerns weighed on sentiment.

The benchmark index fell 0.53% or 37 points to close at 6,989, after moving within a range of 6,934 to 7,009. Trading activity remained brisk, with volume reaching 29.2 billion shares and turnover totaling Rp 15.2 trillion ($893 million), across 1.66 million transactions. Decliners outnumbered gainers 412 to 255, with 151 stocks unchanged.

Top gainers included Voksel Electric (VOKS), which surged 34.04%, Sinergi Inti Plastindo (ESIP) rising 25.37%, Fore Kopi Indonesia (FORE) climbing 24.81%, and Ifishdeco (IFSH) advancing 24.79%.

On the losing side, Wira Global Solusi (WGSH) plunged 54.70%, Danasupra Erapacific (DEFI) dropped 15%, Alakasa Industri (ALKA) fell 14.92%, and Remala Abadi (DATA) declined 14.91%.

Pilarmas Investindo Sekuritas said the index weakness was closely tied to rising market concerns over escalating tensions in the Middle East, particularly following renewed rhetoric from Donald Trump toward Iran.

The brokerage noted that markets reacted to heightened geopolitical risks after the United States warned it could target Iran’s energy infrastructure if access to the Strait of Hormuz is not restored. Iran’s rejection of the demand has raised fears of a prolonged conflict, potentially disrupting global energy supply and driving oil prices higher.

According to Pilarmas, the spike in energy prices has intensified global inflation concerns and increased expectations that the Federal Reserve System may delay interest rate cuts.

Rising energy costs, the brokerage said, heighten inflation risks and reinforce expectations that US interest rates will remain elevated for longer.

Domestically, additional pressure came from the release of a list of stocks with highly concentrated ownership (HSC). The market highlighted large-cap names such as BREN and DSSA, whose corrections were seen as having a significant impact on the index.

Investors are also increasingly concerned that such stocks could face exclusion from global indices, including MSCI Index, amid tighter standards similar to those applied in Hong Kong, potentially triggering foreign fund outflows.

Across the region, Asian markets mostly moved higher on Monday despite ongoing geopolitical uncertainty. Japan’s Nikkei 225 rose 0.6% to 53,413.68, while South Korea’s Kospi gained 1.4% to 5,450. Markets in Hong Kong and China were closed for the Qingming Festival.

Japan has begun releasing oil reserves and exploring alternative supply routes, while South Korea plans to dispatch at least five vessels to Saudi Arabia in the coming weeks to secure new transport routes via the Red Sea.

“Uncertainty remains the dominant theme at the start of April, shifting from tariff concerns last year to the ongoing conflict involving Iran,” said Jay Woods, an analyst at Freedom Capital Markets in New York.

US markets were closed for Good Friday and are set to reopen Monday, while several European markets also remained shut at the end of last week.

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