IHSG Recovers to Positive Territory After Opening Lower
REPUBLIKA.CO.ID, JAKARTA – The Indonesian Stock Exchange’s IHSG is expected to be volatile as portfolio adjustments by investment managers follow MSCI index rebalancing effective after today’s market close. The IHSG opened lower by 17.42 points, or 0.28%, at 6,112.77. Meanwhile, the LQ45 blue-chip index fell 10.51 points, or 1.69%, to 609.89.
However, after a few minutes of trading, the IHSG climbed into positive territory. By 10:21 AM WIB, it stood at 6,185.17, up 0.9% from the previous trading day.
“Today’s trading is likely to remain volatile,” said Ratna Lim, Head of Research at Phintraco Securities, in her analysis in Jakarta on Friday, 29 May 2026.
Domestically, the effective date for MSCI index rebalancing begins after today’s market close on Friday, 29 May 2026, which could prompt global investment managers tracking the index to adjust their portfolios.
“This could trigger significant selling, particularly in stocks removed from the MSCI index, and increase market volatility,” Ratna added.
Meanwhile, the government is preparing incentive schemes for electric vehicles using nickel-based batteries. One option under discussion is the government covering value-added tax (VAT), ranging from 40% to 100%.
Schemes will differ for nickel and non-nickel batteries, with nickel-based vehicles likely receiving larger incentives.
However, the incentives are still under discussion and will be delayed by a month. This could positively impact companies producing nickel-based electric vehicle batteries in the future.
Internationally, market sentiment was bolstered by reports of a potential 60-day ceasefire extension between the US and Iran, which could temporarily ease geopolitical risks in the Middle East.
Despite not yet receiving final approval from US President Donald Trump, the market responded positively to the negotiations.
Meanwhile, oil prices moved variably with reduced volatility, reflecting market expectations of potential global energy supply stabilisation.
On Thursday, 28 May 2026, European markets all declined. The Euro Stoxx 50 fell 0.27%, the UK’s FTSE 100 dropped 0.75%, Germany’s DAX fell 0.34%, and France’s CAC 40 declined 0.23%.
Meanwhile, US Wall Street markets rose on Thursday. The Dow Jones Industrial Average gained 0.05%, the S&P 500 rose 0.58%, and the Nasdaq Composite increased 0.84%.
Asian regional markets opened mixed on Friday morning. Japan’s Nikkei rose 1,195.38 points, or 1.85%, to 65,888.50, China’s Shanghai Composite fell 18.31 points, or 0.45%, to 4,080.32, Hong Kong’s Hang Seng gained 68.34 points, or 0.27%, to 25,074.50, and Singapore’s Straits Times Index rose 36.54 points, or 0.73%, to 5,025.73.