IHSG closes lower as investors adjust portfolios for MSCI index rebalancing

The Indonesian Stock Exchange’s Composite Index (IHSG) closed slightly lower on Friday as major foreign investors reallocated funds to align with the MSCI index rebalancing. The IHSG fell 2.81 points, or 0.05 percent, to 6,127.38, while the LQ45 blue-chip index dropped 9.23 points, or 1.49 percent, to 611.17.

Phintraco Sekuritas head of research Ratna Lim stated, “The IHSG closed slightly lower amid MSCI rebalancing,” in her analysis on Friday. Trading on 29 May saw the IHSG close slightly lower after initially rising to 6,230.

The MSCI index rebalancing for May 2026 will take effect after trading closes on 29 May 2026, prompting investment managers and investors to adjust their portfolios. On Friday, the IHSG initially rose significantly, supported by gains in conglomerate stocks. Despite selling pressure on some stocks removed from the MSCI index, the correction was less severe than feared, with some shares rising.

“This is believed to be because investors had already anticipated the MSCI rebalancing,” Lim said.

Positive sentiment came from the strengthening of most Asian markets, driven by technology sector gains on Wall Street in the United States, despite rising military tensions between the US and Iran. Meanwhile, the decline in global crude oil prices was a positive factor, but the rupiah continued to weaken to a low of Rp17,881 per US dollar in the spot market.

Opening weaker, the IHSG moved into positive territory until the first session close. In the second session, it turned negative ahead of the closing.

According to the IDX-IC sectoral index, eight sectors rose, led by infrastructure up 3.34 percent, followed by raw materials and energy sectors rising 3.08 and 2.65 percent respectively. Three sectors fell: finance down 1.03 percent, property down 0.90 percent, and healthcare down 0.19 percent.

Top gainers were KJEN, BREN, RATU, PTRO, and BRPT, while the biggest losers were APIC, ASPR, FILM, TALF, and MGNA.

Trading frequency was recorded at 2,377,054 transactions with 46.96 billion shares traded worth Rp49.94 trillion. A total of 271 stocks rose, 409 fell, and 137 remained unchanged.

Regional Asian markets closed with the Nikkei up 1,636.88 points, or 2.53 percent, to 66,330.00; the Hang Seng up 176.23 points, or 0.70 percent, to 25,182.39; the Shanghai Composite down 30.07 points, or 0.73 percent, to 4,068.57; and the Straits Times Index up 49.64 points, or 0.99 percent, to 5,038.93.