{
    "success": true,
    "data": {
        "id": 1736087,
        "msgid": "msci-removes-19-indonesian-stocks-analysts-see-ihsg-nearing-turning-point-1778656130",
        "date": "2026-05-13 11:21:44",
        "title": "MSCI Removes 19 Indonesian Stocks, Analysts See IHSG Nearing Turning Point",
        "author": "Aprillia Ika",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Finance",
        "summary": "Morgan Stanley Capital International (MSCI) has removed 19 Indonesian stocks from its global indices, including six from the MSCI Global Standard Indexes and 13 from the Small Cap Indexes, triggering short-term pressure on the domestic stock market due to passive fund managers adjusting portfolios. Analysts advise against panic selling, viewing the changes as technical rather than indicative of fundamental weaknesses, and suggest it presents accumulation opportunities for blue-chip and small-cap stocks amid volatility. This event is seen as a chance for Indonesia's capital market to enhance transparency and investor protection.",
        "content": "<p>JAKARTA, KOMPAS.com - The decision by Morgan Stanley Capital\nInternational (MSCI) to remove 19 Indonesian stocks from its global\nindex has triggered pressure on the domestic stock market. However,\nmarket participants are advised not to get caught up in panic selling,\nas the changes are considered more technical in nature rather than\nreflecting any fundamental weakening of the issuers.<\/p>\n<p>The stock market reacted immediately following the announcement of\nthe MSCI rebalancing results on 12 May 2026. The pressure is expected to\ncome from global passive fund managers who use the MSCI index as a\nbenchmark for investments.<\/p>\n<p>Co-Founder of PasarDana and capital market practitioner, Hans Kwee,\nbelieves that the removal of several stocks from the MSCI index does not\nnecessarily indicate any fundamental damage to the companies.<\/p>\n<p>\u201cMarket participants should remain calm and not get trapped in panic\nselling. The removal of several issuers from this index is more\ntechnical in nature, related to weighting methodology and liquidity,\u201d\nsaid Hans in his statement on Wednesday (13\/5\/2026).<\/p>\n<p>\u201cPassive fund managers will partly utilise the final period on 29 May\nto rebalance their portfolios in line with the MSCI announcement,\u201d Hans\nadded.<\/p>\n<p>Previously, MSCI officially announced the results of the periodic\nreview or index review for May 2026 on Wednesday (13\/5\/2026). This\nrebalancing result is considered surprising to market participants as it\ndeviates significantly from expectations.<\/p>\n<p>In this adjustment, MSCI removed six Indonesian stocks from the MSCI\nGlobal Standard Indexes, namely AMMN, BREN, TPIA, DSSA, CUAN, and\nAMRT.<\/p>\n<p>Although removed from the MSCI Global Standard Indexes, AMRT stock\nhas been moved to the MSCI Small Cap Indexes.<\/p>\n<p>In addition, MSCI also removed 13 Indonesian stocks from the MSCI\nSmall Cap Indexes, namely ANTM, AALI, BANK, BSDE, DSNG, SIDO, MIDI,\nMIKA, TKIM, APIC, SSMS, TPAG, and MSIN.<\/p>\n<p>Senior Market Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta,\nstated that the exit of Indonesian stocks from the MSCI Global Standard\nIndexes has the potential to trigger selling actions by foreign\ninvestors, particularly from fund managers who use MSCI as a portfolio\ninvestment benchmark.<\/p>\n<p>\u201cIn my view, outflows will certainly occur as well. Usually, if fund\nmanagers reference the MSCI standard, they will be forced to sell those\nstocks to adjust to the latest index composition,\u201d said Nafan when\ncontacted by Kompas.com on Wednesday morning.<\/p>\n<p>Hans believes that the short-term volatility resulting from the MSCI\nrebalancing actually opens up accumulation opportunities on blue-chip\nstocks as well as small-cap sectors that have corrected anomalously due\nto forced selling pressure from passive fund managers.<\/p>\n<p>\u201cBehind this short-term volatility, opportunities open up to\naccumulate blue-chip stocks and small-cap sectors whose prices have\ncorrected anomalously due to panic and forced selling pressure,\u201d he\nsaid.<\/p>\n<p>According to Hans, this MSCI announcement can also serve as a\nmomentum for evaluating Indonesia\u2019s capital market to strengthen\ntransparency and investor protection.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/msci-removes-19-indonesian-stocks-analysts-see-ihsg-nearing-turning-point-1778656130",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}