Analysts Say These Are the Reasons Favourite Investor Stocks Were Removed from the MSCI Index

JAKARTA, KOMPAS.com - Morgan Stanley Capital International (MSCI) has announced the removal of several leading Indonesian stocks from the MSCI Global Standard Indexes on Wednesday (13/5/2026) WIB. Stocks that were previously investor favourites, such as PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), and PT Chandra Asri Pacific Tbk (TPIA), have been excluded by the global index provider due to free float issues. Other factors include High Shareholding Concentration (HSC), or stocks with high ownership concentration, as well as declining liquidity and market capitalisation. Senior Market Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta, believes the removal of Indonesian stocks from the MSCI index is related to high HSC. When share ownership is too concentrated among major shareholders, the portion of shares circulating in the public or free float becomes limited, thus no longer meeting MSCI’s criteria. In addition, MSCI also considers the free float adjustment factor (FTF) and market capitalisation (market cap) in its index evaluations. If a stock’s free float falls below the minimum threshold set, it risks being removed or placed on the exclusion list from the global index. “There is also free float and FTF, of course, this must be a decline in free float, for example, or FTF, or even FTF, which must be excluded like that,” he explained. Nafan sees the decline in market cap as another factor influencing the exit of Indonesian stocks from the MSCI index. Specifically for PT Sumber Alfaria Trijaya Tbk (AMRT) shares, he believes the downgrade from MSCI Global Standard Indexes to MSCI Small Cap Indexes is due to its market capitalisation no longer meeting the minimum threshold for the standard index category, although it is still sufficient for the small cap index category. In agreement, Investment Specialist at KISI, Ahmad Faris Mu’tashim, stated that changes in MSCI regulations regarding free float and HSC have become the main factors causing domestic issuers to fail to meet inclusion requirements. “Some regulations on new free float and HSC lists have become the latest rules for inclusion, which are not met by issuers experiencing deletion,” Faris emphasised. Furthermore, Faris views stocks like CUAN, BREN, and DSSA as the issuers most vulnerable to selling pressure or sell-offs following this MSCI rebalancing. This risk is particularly influenced by the relatively limited trading liquidity of these stocks compared to other big cap stocks. “CUAN, BREN, DSSA, are stocks that have the potential to experience quite high sell-offs due to liquidity factors,” he added.