Jakarta. Jakarta Composite Index (JCI) slipped 0.13% in early Thursday trading as renewed Middle East tensions pushed oil prices higher and prompted investors to lock in profits after five consecutive days of gains.

The benchmark index dropped 8 points to 5,865, moving between 5,839 and 5,870. Trading volume reached 2.1 billion shares, with turnover of Rp 1 trillion ($55.3 million) across more than 250,000 transactions. A total of 216 stocks advanced, 255 declined, and 203 were unchanged.

Phintraco Sekuritas said the correction was partly driven by escalating geopolitical tensions in the Middle East, which triggered a rebound in crude oil prices.

“This prompted profit-taking after the JCI posted gains for five consecutive days,” Phintraco Sekuritas wrote in a research note on Thursday.

The brokerage also highlighted S&P Dow Jones Indices' (S&P DJI) decision to place Indonesia under review, potentially paving the way for a downgrade from emerging-market to frontier-market status.

“Given these developments, the JCI may continue its correction today and test the support area between 5,800 and 5,745,” Phintraco Sekuritas said.

Indonesia Stock Exchange (IDX) plans to meet with S&P DJI following the global index provider's decision to place Indonesia on a watchlist for a market-classification review.

Meanwhile, the Finance Ministry has set a target of attracting Rp 300 trillion to Rp 500 trillion in foreign investment into the Indonesia Financial Center (PFII).

“Warnings from several international institutions regarding investment in Indonesia's capital market have triggered capital outflows as foreign investor confidence weakens,” Phintraco Sekuritas said.

Domestic sentiment was also weighed down by weaker consumer confidence. Bank Indonesia's Consumer Confidence Index (CCI) fell to 117.8 in June from 120.9 in May, although it remained firmly in optimistic territory.

“This was the lowest level since September 2025,” Phintraco Sekuritas said.

Consumers' perceptions of current economic conditions also softened in June, with the Current Economic Conditions Index declining to 109.2 from 112.2 a month earlier. The drop was driven by a weaker Current Income Index, which fell to 119.8 from 123.2.

Despite the decline, both indicators remained above the 100-point threshold, signaling that consumer sentiment remained optimistic.

“Investors will next await retail sales and motorcycle sales data scheduled for release today,” Phintraco Sekuritas added.

Global markets were volatile on Wednesday as oil prices climbed and US stocks came under pressure after President Donald Trump cast doubt on a temporary truce in the war with Iran.

The S&P 500 fell as much as 1.1% after Trump said the ceasefire agreement was “over,” before trimming its loss to 0.3% after he said recent fighting did not signal a return to full-scale war. The conflict has raised concerns over renewed inflationary pressures worldwide.

The Dow Jones Industrial Average dropped 576 points, or 1.1%, while the Nasdaq Composite rose 0.2% after erasing an early loss.

Regional markets were mixed as of 8:31 a.m. Jakarta time on Thursday. Japan's Nikkei gained 2.21%, while South Korea's Kospi surged 3.82%. Hong Kong's Hang Seng fell 0.23%, and China's SSE Composite lost 0.49%.

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