On January 12, the JCI moved highly volatile, swinging sharply intraday as it failed to hold above the 9,000 psychological level. Early gains quickly reversed, triggering profit-taking and panic selling, especially in large-cap stocks, before the index partially recovered toward the close.

The volatility was largely driven by heightened global geopolitical risks and the weakening of Rupiah, which pushed investors into a risk-off mode. Rising uncertainty led to reduced exposure to emerging markets, amplifying selling pressure and making market movements more erratic throughout the session.
 
Over the past week, tensions spiked sharply in Latin America after the U.S. launched a military operation in Venezuela and captured President Nicolás Maduro, triggering international backlash, and regional instability concerns. Several countries and global institutions criticized the move as a breach of sovereignty, fueling uncertainty about broader geopolitical fallout and potential refugee flows. 

At the same time, internal unrest in Iran has intensified, with nationwide protests and government crackdowns drawing global attention and raising fears of broader instability. These developments, paired with concerns about energy supply disruptions from Iran and Venezuela, have kept geopolitical risk elevated, supporting volatile swings in commodity and equity markets.
 
On January 12th, trading activity on the JCI was heavily dominated by commodity-related stocks, with 7 out of the top 10 most-transacted names coming from the energy, mining, and resource sectors. This reflects strong investor preference for commodities as both trading vehicles and defensive plays amid heightened market uncertainty.

We believe this pattern is closely aligned with unresolved geopolitical tensions, which continue to support commodity prices through supply-side risk and inflation hedging dynamics. As geopolitical risks remain elevated, capital rotation into commodity stocks appears rational and consistent with global risk-off positioning. Therefore, Investors might want to pay a closer attention towards the commodity sectors as most eyes are watching it closely.