IHSG Surges Amid MSCI Rebalancing Sentiment

Jakarta, CNBC Indonesia - Following a correction in the last trading session before Idul Adha holidays, the Indonesia Stock Exchange Composite Index ( IHSG) rebounded on Friday, May 29, 2026. The rise occurred amid the implementation of Morgan Stanley Capital International ( MSCI) index rebalancing. At the close of the first session, the IHSG surged 87.69 points, or 1.43%, to 6,217.88. Traded value reached Rp 16.06 billion with 22 billion shares transacted across 1.33 million transactions. Of the total, 319 stocks advanced, 333 declined, and 161 remained unchanged. Several conglomerate stocks, which had previously steeply corrected after the MMSC and FTSE announcements, rebounded today, supporting the IHSG. For instance, BREN hit the ARA ( upper limit) of 25% to Rp 3,300 per share, contributing 24.35 points to the index. BRPT nearly reached ARA, adding 20.25 points. Other contributing stocks included AMMN, DCII, and Mora. Hans Kwee, co-founder of PasarDana and capital market practitioner, said the Indonesian equity market faced potential high volatility due to passive fund managers rebalancing portfolios following MSCI’s May 12 announcement. However, he noted that many fund managers likely adjusted their portfolios before the May 29 deadline. ‘Surprisingly, there was no panic in the market despite some MSCI delisted stocks being pressured,’ Kwee stated on Friday. He added that downward pressure might persist for stocks removed from the MSCI Global Standard and Small Cap indexes, but the delisting was technical, related to weighting and liquidity methodology, not fundamental changes. ’ Many delisted stocks have strong fundamentals, positive prospects, and attractive valuations,’ Kwee said, adding that post-rebalancing sentiment could mark the bottom of the IHSG’s decline, with potential recovery based on future fundamentals. Optimism is further supported by OJK and SRO reforms that enhanced market transparency, credibility, and integration, boosting confidence among local and foreign investors.