JCI Under Pressure After MSCI Rebalancing, Investors Advised to Focus on Fundamentals

JAKARTA, KOMPAS.com - Retail investors are seen to have an opportunity to reorganise their investment portfolios amid the announcement of the Morgan Stanley Capital International (MSCI) rebalancing. The MSCI rebalancing is marked by the removal of 19 Indonesian stocks from the global index. This situation has the potential to trigger outflows of foreign funds or capital outflows from the Indonesia Stock Exchange (BEI). Nevertheless, this condition is considered not to reflect the fundamentals of the issuers listed on the exchange. Capital market observer Reydi Octa stated that investors should not panic in facing the impact of the MSCI rebalancing. “Focus more on the fundamentals of issuers rather than just short-term pressure due to foreign flows (outflows of foreign funds),” said Reydi when contacted by Kompas.com on Wednesday (13/5/2026). “And carry out gradual accumulation in stocks whose fundamentals remain strong,” he added. Reydi assessed that stocks with high free float, good liquidity, strong governance, and large market capitalisation will still be favoured by global investors in the medium term. Free float refers to the percentage of a company’s shares owned by the public and available for free trading on the regular market. “Investors should now be more selective in choosing issuers with healthy free float and good valuation and price stability going forward,” he said. Capital market practitioner and Co-Founder of PasarDana, Hans Kwee, also sees opportunities behind the current market volatility. “To accumulate blue-chip stocks and small-cap sectors whose prices have been anomalously corrected due to panic and forced selling by passive fund managers,” said Hans to Kompas.com on Tuesday (13/5/2026). “Do not get caught in panic selling,” he added. According to Hans, the removal of several issuers from the MSCI index is more technical in nature. This condition relates to the methodology of weighting and stock liquidity. Such a situation does not automatically reflect a deterioration in the company’s fundamentals.