Market Braces for MSCI Rebalancing Critical Date

JAKARTA, investor.id – Indonesia’s stock market could face high volatility today, Friday 29 May 2026, as passive fund managers are likely to rebalance portfolios following MSCI’s 12 May 2026 announcement, effective 1 June 2026.

Analysis of stock and composite index (IHSG) movements after MSCI announcements suggests most fund managers have already adjusted their portfolios ahead of the final deadline on 29 May.

However, downward pressure may still affect stocks removed from the MSCI Global Standard Index and MSCI Small Cap Index. MSCI’s deletions of Indonesian companies from its indices are technical, related to weighting methodology and liquidity, not reflecting any fundamental deterioration in the companies.

‘Many delisted companies have strong fundamentals, excellent prospects, and currently attractive valuations,’ said Hans.

Capital market reforms by OJK and SRO have successfully enhanced transparency, credibility, and integration of Indonesia’s capital market, boosting confidence among domestic and foreign investors.