IHSG Opens Lower After MSCI Drops 10 Indonesian Stocks from Global Indexes
The Jakarta Composite Index (IHSG) reversed course into the red on Thursday morning, falling 0.43% to 6,346.15, after MSCI announced the results of its August 2026 Index Review. The index had opened slightly higher at 6,388.23 before succumbing to selling pressure. Morning trading volume reached Rp 647.8 billion, with 1.2 billion shares changing hands across 95,580 transactions.
MSCI did not add any Indonesian stocks to its Global Standard Indexes in the latest review. Instead, two stocks were removed from the standard category: PT Charoen Pokphand Indonesia Tbk (CPIN), which was downgraded to the MSCI Global Small Cap Indexes, and PT GoTo Gojek Tokopedia Tbk (GOTO), which was deleted from the MSCI Indonesia Investable Market Index (IMI). Additionally, MSCI removed nine Indonesian stocks from its Global Small Cap Indexes. All changes will take effect after market close on 31 August 2026, becoming effective on 1 September 2026.
From the United States, markets received limited positive signals after July’s consumer price index (CPI) came in line with expectations. CPI rose 0.1% month-on-month and 3.4% year-on-year, while core inflation increased 0.2% and 2.5% respectively. The data eased concerns about inflationary pressure, although the pace remains above the Federal Reserve’s 2% target. Market attention now shifts to the US Producer Price Index (PPI) and initial jobless claims due Thursday evening. Lower-than-expected figures could strengthen expectations for a Fed rate cut, providing a positive sentiment for risk assets including Indonesian equities.
Regionally, investors will also monitor Japan’s PPI, which is expected to have risen again in July. A higher-than-anticipated increase in producer inflation could reinforce expectations for Bank of Japan monetary policy normalisation and increase Asian market volatility. Meanwhile, geopolitical uncertainty in the Middle East continues to pose a risk to global markets, with the deadlock between the US and Iran over the reopening of the Strait of Hormuz keeping oil prices elevated and volatile, with Brent crude around US$88 per barrel and WTI around US$83 per barrel.