JCI Slumps 1.13% as MSCI Rebalancing Effect Lingers

The Jakarta Composite Index (JCI) ended trading on Thursday significantly weaker, dropping 72.08 points, or 1.13 percent, to 6,301.77, as market participants continued to react to the latest MSCI Inc. index review for August 2026. The LQ45 index of top stocks also fell, declining 6.68 points, or 1.05 percent, to 627.16. Ratna Lim, Head of Research at Phintraco Sekuritas, attributed the decline to the removal of several Indonesian stocks from the MSCI Global Standard Indexes, as well as profit-taking ahead of President Prabowo’s state address regarding the 2027 State Budget (RAPBN). MSCI’s August review saw two Indonesian stocks dropped from its Global Standard Indexes, with one being downgraded to the MSCI Global Small Cap Index, while another was moved to the small-cap category. A total of nine Indonesian stocks were removed from the index. Regionally, Asian markets were mostly lower after a previous rally, with China’s central bank committing to ‘practical and effective’ policy support but stopping short of signalling massive monetary easing, warning that rapid tightening after large-scale easing historically triggers sharper market shocks. The JCI opened higher but quickly reversed into negative territory, remaining in the red throughout both trading sessions. All eleven sectoral indices on the IDX-IC closed lower, with the basic materials sector suffering the steepest drop of 2.93 percent, followed by energy and industrials, which fell 2.32 percent and 2.31 percent respectively. Market breadth was decidedly negative, with 474 stocks declining against 186 gainers and 303 unchanged. Total trading volume reached 26.78 billion shares with a transaction value of Rp 1.90 trillion across 1.90 million trades. Among regional bourses, Japan’s Nikkei rose 1.24 percent to 68,362.00, while the Shanghai Composite fell 0.50 percent to 3,926.96 and Hong Kong’s Hang Seng slipped 0.17 percent to 25,396.51.