IHSG Falls as Investors Await MSCI Classification Review

The Jakarta Composite Index (IHSG) weakened on Monday, driven by investors taking a defensive position while awaiting the Annual Market Classification Review announcement from MSCI scheduled for Wednesday morning.

Market analyst Elandry Pratama stated that the index’s decline of more than one percent was influenced by a combination of external factors and the market entering a wait-and-see phase ahead of the MSCI event. “The market tends to be sideways with occasional pressure as long as net foreign flow remains unstable,” Elandry told ANTARA in Jakarta.

He noted that institutional investors typically begin rebalancing their portfolios early, leading to thinner liquidity in certain stocks and more aggressive price movements. Additionally, the strengthening of the US dollar and a rise in US Treasury yields exerted pressure on emerging markets, triggering capital outflows and reducing foreign investors’ risk appetite in the domestic market.

During the first trading session, the IHSG closed down 77.21 points, or 1.25 percent, at 6,009.93. The trading data recorded a frequency of 1,087,000 transactions, with 12.32 billion shares traded, amounting to a value of Rp7.61 trillion. Market breadth was negative, with 206 stocks advancing, 501 declining, and 252 remaining unchanged.