MSCI-FTSE Effects Persist as IDX Opens with 2.59% Plunge
The Indonesia Composite Index (IHSG) opened significantly lower at the start of trading today, Monday (18/5/2026). The index fell by 94.34 points, or 1.40%, to the 6,628.97 level. Shortly after the opening bell, the decline deepened to 2.59%. Among the listed companies, shares associated with Prajogo Widjaja remain a primary driver of the weakness, alongside other issuers such as DSSA, which are under scrutiny following reviews by international index providers MSCI and FTSE.
As the first trading week of the period begins, domestic market participants are closely monitoring several key domestic and international agendas. Following a difficult previous week, where the stock market fell 3.5% and the Rupiah depreciated by 0.58%, both the currency and the index face significant challenges due to various prevailing sentiments. Domestically, market attention remains focused on the subsequent impacts of the MSCI review, the Bank Indonesia Board of Governors meeting, and upcoming BI data releases. Internationally, investors are awaiting Chinese economic data and the release of the Federal Reserve’s FOMC minutes scheduled for Wednesday (21/5/2026).
Asia-Pacific markets also trended lower on Monday amid rising investor concerns regarding the escalation of geopolitical conflict in the Middle East. Market sentiment worsened following warnings from US President Donald Trump regarding Iran, triggering fears of disruptions to the global oil supply. This geopolitical tension immediately drove a surge in global oil prices, with Brent crude futures for July rising 1.34% to US$110.72 per barrel, while West Texas Intermediate (WTI) June contracts strengthened 1.75% to US$107.26 per barrel.
Most Asian exchanges traded in the red. The Australian S&P/ASX 200 fell 0.76%, the Japanese Nikkei 225 weakened by 0.2%, and the Topix saw a slight increase of 0.1%. In South Korea, the Kospi and Kosdaq indices plummeted by more than 2%. Meanwhile, the 10-year Japanese government bond yield rose by more than 8 basis points to 2.785%, extending the global bond sell-off amid rising inflation concerns. The Hang Seng futures in Hong Kong also sat lower at 25,733 compared to the previous close of 25,962.73, as investors monitor the high tensions between Washington and Tehran.
In the United States, stock futures remained relatively flat following last week’s strong rally. Investors are now awaiting quarterly earnings reports from Nvidia and several major US retailers. US tech stocks have faced pressure, with Intel falling more than 6%, while AMD and Micron Technology dropped 5.7% and 6.6% respectively. Nvidia also corrected by 4.4%, highlighting investor concerns regarding high valuations in the AI sector amidst global uncertainty.