MSCI in the Spotlight: Check These Stock Recommendations for Profits

Jakarta, CNBC Indonesia — The Composite Stock Price Index (IHSG) closed down 0.68% at 6,858.90 on Tuesday (12/5) trading. The index weakened amid selling pressure from foreign investors, who recorded a net sell of Rp799.25 billion in the regular market and Rp931.89 billion across all markets. Several stocks that supported the index movement included Barito Pacific Tbk. (BRPT), which surged 14.86%, Sinarmas Multiartha Tbk. (SMMA) up 4.30%, and Bank Rakyat Indonesia (Persero) Tbk. (BBRI) strengthening 0.63%. On the other hand, the biggest pressures came from Mora Telematika Indonesia Tbk. (MORA) down 15%, Astra International Tbk. (ASII) weakening 3.31%, and Bayan Resources Tbk. (BYAN) correcting 3.80%. Sector-wise, seven out of eleven sectors were in the red. The healthcare sector was the most pressured after falling 3.51%, while the basic industry sector led the gains with a 1.85% rise. From the global market, US stock indices closed mixed. The Dow Jones strengthened 0.11% to 49,760, while the S&P 500 fell 0.16% to 7,400 and the Nasdaq weakened 0.71% to 26,088. Domestic market sentiment is expected to remain overshadowed by pressure following MSCI’s announcement of removing several issuers from its global indices. Six stocks were removed from the MSCI Global Standard Indexes, namely Amman Mineral Internasional Tbk. (AMMN), Barito Renewables Energy Tbk. (BREN), Chandra Asri Pacific Tbk. (TPIA), Dian Swastatika Sentosa Tbk. (DSSA), Petrindo Jaya Kreasi Tbk. (CUAN), and Sumber Alfaria Trijaya Tbk. (AMRT). Specifically for AMRT, the stock was moved to the MSCI Small Cap Indexes. In addition, MSCI also removed 13 stocks from the MSCI Small Cap Indexes, including Aneka Tambang Tbk. (ANTM), Bumi Serpong Damai Tbk. (BSDE), Industri Jamu dan Farmasi Sido Muncul Tbk. (SIDO), up to Mitra Keluarga Karyasehat Tbk. (MIKA). MSCI assessed that the share ownership structure of several issuers was too concentrated, so the effective free float portion was deemed limited. This is reflected in BREN with an ownership concentration level of 97.31% and DSSA at 95.76%. Both stocks had previously been removed from the LQ45 and IDX80 indices. Market participants view the MSCI index composition changes as potentially triggering foreign fund outflows until the end of May. To date, foreign investors have recorded a net foreign sell in the regular market of Rp48.48 trillion year to date. Meanwhile, the weights of Bank Central Asia Tbk. (BBCA), BBRI, and Telkom Indonesia (Persero) Tbk. (TLKM) are expected to decrease by 0.001%, while Bank Mandiri (Persero) Tbk. (BMRI) could fall by 0.003%. All changes will apply at the close of trading on 29 May and take effect from 1 June 2026. Amid this sentiment, the performance of XLSMART Telecom Sejahtera Tbk. (EXCL) has caught market attention after the company recorded a net loss of Rp716.27 billion in Q1-2026, reversing from a profit of Rp388.23 billion in the same period last year. Nevertheless, EXCL’s revenue increased 37.41% year-on-year to Rp11.82 trillion. The company’s expenses also rose significantly by 61.71% to Rp11.71 trillion, in line with the still high costs of network and asset integration post-merger with PT Smartfren Telecom. The company still recorded a normalized EBITDA of Rp5.43 trillion with a 46% EBITDA margin, while normalized profit after tax grew 254% year-on-year to Rp1.37 trillion. Technically, EXCL shares are still moving sideways in the range of Rp2,910 to Rp3,290. Meanwhile, GoTo Gojek Tokopedia Tbk. (GOTO) plans to carry out a share buyback worth a maximum of Rp3.5 trillion using the company’s internal cash. The company’s cash position in Q1-2026 was recorded at Rp22.73 trillion, up from Rp19.13 trillion in the same period last year. If the buyback is fully realised, GOTO’s cash position is expected to drop to Rp19.23 trillion, while total assets and equity could potentially become Rp43.27 trillion and Rp25.32 trillion, respectively. The number of shares that can be bought back is limited to a maximum of 10% of the placed and fully paid-up capital. As of 30 April 2026, GOTO’s treasury shares were recorded at 39.29 billion shares or equivalent to 3.30%. The buyback action will be carried out through Ciptadana Sekuritas Asia after obtaining shareholder approval at the RUPSLB on 18 June 2026. The buyback programme may run for up to 12 months after approval is obtained. Today’s Stock Recommendations - ADMR - Buy 1750-1760 | TP 1800-1825 | SL 1645 - ISAT - Buy 2200-2220 | TP 2260-2300 | SL 2080 - CDIA - Buy 990-1000 | TP 1025-1050 | SL 930 - AGII - Buy 2900-2920 | TP 2990-3050 | SL 2750 - TUGU - Buy 1145-1150 | TP 1180-1200 | SL 1090