{
    "success": true,
    "data": {
        "id": 1737306,
        "msgid": "msci-rebalancing-opens-opportunities-for-accumulating-blue-chip-and-small-cap-stocks-1778680453",
        "date": "2026-05-13 17:44:42",
        "title": "MSCI Rebalancing Opens Opportunities for Accumulating Blue Chip and Small Cap Stocks",
        "author": "Gita Amanda",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Finance",
        "summary": "The MSCI May 2026 Index Review has led to the removal of several Indonesian stocks from its global indices, prompting market volatility but also presenting accumulation opportunities for blue chip and small cap shares, according to market practitioner Hans Kwee. He advises investors to remain calm and avoid panic selling, viewing the deletions as technical adjustments rather than fundamental issues, and highlights the importance of regulatory transparency from OJK and SROs to enhance market credibility akin to India's success. This event could mark the bottom of the IHSG correction, paving the way for stronger long-term growth based on company fundamentals.",
        "content": "<p>REPUBLIKA.CO.ID, JAKARTA \u2013 Capital market practitioner and Co-founder\nof PasarDana, Hans Kwee, has responded to the impact of the Morgan\nStanley Capital International (MSCI) index rebalancing announcement for\nMay 2026, which has ejected several stocks from the Indonesian capital\nmarket. According to him, there are potential opportunities that can be\nexploited to gain profits from that momentum.<\/p>\n<p>\u201cThe stock market is reacting to the MSCI rebalancing announcement on\n12 May 2026. However, market participants should stay calm and not get\ncaught in panic selling,\u201d said Hans in his statement to reporters on\nWednesday (13\/5\/2026).<\/p>\n<p>He explained that it needs to be understood that the deletion of\nseveral issuers from the MSCI index is more of a technical nature\nrelated to weighting methodology and liquidity. It does not necessarily\nreflect fundamental damage to those companies.<\/p>\n<p>In addition, many market participants and fund managers have\nanticipated the deletion of those stocks by MSCI in recent months.\nPassive fund managers will partly utilise the final period on 29 May to\nrebalance their portfolios in line with the MSCI announcement.<\/p>\n<p>\u201cBehind this short-term volatility, there is actually an opportunity\nto accumulate blue chip stocks and the small cap sector whose prices\nhave corrected anomalously due to panic and forced selling pressure by\npassive fund managers,\u201d he revealed.<\/p>\n<p>Hans stated that transparency is now a crucial asset for Indonesia to\nfollow in the footsteps of India\u2019s success. In that regard, the role of\nthe Financial Services Authority (OJK) and the Self Regulatory\nOrganisation (SRO), namely the Indonesia Stock Exchange (BEI),\nIndonesian Central Securities Depository and Clearing (KPEI), and\nIndonesian Central Securities Depository (KSEI), is vital in tightening\nsupervision of ownership structures and affiliated party transactions to\nensure a fairer market.<\/p>\n<p>\u201cThe SRO\u2019s efforts in promoting more real-time information openness\nand OJK\u2019s firm steps in reforming minority investor protection will\nserve as positive signals for global rating agencies like MSCI,\u201d he\nsaid.<\/p>\n<p>He cited India, which has successfully recovered and become a darling\nof emerging markets by aligning foreign ownership limits and\nstrengthening the domestic investor base through massive investment\ndigitalisation. Those steps prove that index adjustment periods are\n\u2018cleansing\u2019 moments to create a more credible market.<\/p>\n<p>\u201cFor Indonesian investors, this is the time to conduct an objective\nportfolio evaluation, because markets that can improve after technical\ncorrections often yield much more resilient growth in the long term.\nThis MSCI announcement could be the bottom of the IHSG correction before\nit rebounds following company fundamentals,\u201d he emphasised.<\/p>\n<p>It was previously known that the global index provider, Morgan\nStanley Capital International (MSCI), announced the results of the\nIndonesian market index review in the MSCI May 2026 Index Review.<\/p>\n<p>In the MSCI index rebalancing announcement, six Indonesian stocks\nwere officially removed from the MSCI Global Standard Index. The six\nstocks are PT Amman Mineral Internasional Tbk (AMMN), PT Barito\nRenewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT\nDian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN),\nand PT Sumber Alfaria Trijaya Tbk (AMRT).<\/p>\n<p>MSCI also removed several stocks from the MSCI Global Small Cap\nIndex. Those stocks are PT Aneka Tambang Tbk (ANTM), PT Astra Agro\nLestari Tbk (AALI), PT Bank Aladin Syariah Tbk (BANK), PT Bumi Serpong\nDamai Tbk (BSDE), PT Dharma Satya Nusantara Tbk (DSNG), PT Industri Jamu\ndan Farmasi Sido Muncul Tbk (SIDO), PT Midi Utama Indonesia Tbk (MIDI),\nPT Mitra Keluarga Karyasehat Tbk (MIKA), PT MNC Digital Entertainment\nTbk (MSIN), PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Pacific\nStrategic Financial Tbk (APIC), PT Sawit Sumbermas Sarana Tbk (SSMS),\nand PT Triputra Agro Persada Tbk (TAPG).<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/msci-rebalancing-opens-opportunities-for-accumulating-blue-chip-and-small-cap-stocks-1778680453",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}