MSCI Rebalancing Drags IHSG Down 1.13 Percent
The Indonesia Stock Exchange (IDX) composite index (IHSG) closed significantly lower on Thursday afternoon (13/8), as market participants responded negatively to the results of MSCI Inc.’s August 2026 index review and awaited the direction of future fiscal policy. The IHSG ended the session down 72.08 points, or 1.13 percent, at 6,301.77. In line with the sectoral indices, the LQ45 index of 45 blue-chip stocks also fell by 6.68 points, or 1.05 percent, to 627.16.
Phintraco Sekuritas Head of Research, Ratna Lim, explained that the index’s weakness was triggered by several domestic factors. "The index decline was caused, among other things, by the removal of several stocks from the MSCI index rebalancing for August 2026, ahead of President Prabowo’s state address on the 2027 State Budget (RAPBN), as well as profit-taking," Ratna stated in her analysis in Jakarta on Thursday.
MSCI (Morgan Stanley Capital International), in its August 2026 review, made changes to the composition of Indonesian stocks. Two stocks were removed from the MSCI Global Standard Indexes, with one of them being downgraded to the MSCI Global Small Cap Index. Meanwhile, one stock was moved to the MSCI Global Small Cap Index category, but on the other hand, MSCI removed nine Indonesian stocks from that index.
From an external perspective, Asian regional bourses were mostly weaker following a rally the previous day. The People’s Bank of China (PBoC) committed to implementing practical and effective policies, but without signalling massive monetary easing. The PBoC also warned that rapid monetary tightening after a period of easing tends to trigger sharp market shocks.
Throughout the day, the IHSG opened higher but quickly slipped into negative territory, remaining there until the close. All eleven IDX-IC sectors weakened, led by the basic materials sector which plunged 2.93 percent.
The day’s top gainers included EKAD, BABY, AGAR, YPAS, and PBSA, while the top losers list was occupied by DART, BIPP, TRUK, SHID, and STAR.