MSCI Rebalancing: IHSG Closes Down 1.98% on Wednesday
The Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange (BEI) closed lower on Wednesday afternoon, down 135.57 points or 1.98% to 6,723.32.
Phintraco Sekuritas’ Head of Analysis, Ratna Lim, stated that the IHSG correction was influenced by negative sentiment from the removal of several Indonesian stocks from the MSCI Global Standard Index and MSCI Global Small Cap Index, as announced in the MSCI quarterly review for May 2026 on Tuesday, 13 May 2026 local time.
“The removal of several stocks from the MSCI Global Standards Index and MSCI Global Small Cap Index in the May 2026 quarterly review announcement has become a negative factor driving the index’s decline,” Ratna said in her analysis in Jakarta on Wednesday, as quoted from Antara.
Nevertheless, she assessed that market pressure remains relatively limited because projections for foreign fund outflows are not as large as previously estimated.
Additionally, investors remain optimistic about Indonesia’s status as part of the emerging market.
Ratna added that some of the outflowing funds had already anticipated MSCI’s actions in advance.
On the other hand, statements from the Financial Services Authority (OJK) have also helped to contain market pressure. The OJK stated that not all stocks removed from the MSCI Global Small Cap Index were due to declining performance or weakening market capitalisation.
Some stocks actually experienced an increase in market capitalisation, making them eligible for higher index groups. However, this transition is still held back by MSCI’s temporary freeze policy.
Phintraco Sekuritas predicts that the IHSG could test the 6,700-6,650 level in next week’s trading.
In terms of trading, market capitalisation was recorded at Rp11,841 trillion.
Share trading volume reached 24.74 billion shares with a frequency of 1.46 million transactions and a transaction value of Rp10.26 trillion.
A total of 280 stocks rose, 411 stocks fell, and 268 stocks were unchanged. In terms of sectors, almost all sectors were in the red, except for the transportation sector which rose 4.89% and the industrial sector which increased 1.26%.
The basic materials sector recorded the deepest decline of 4.43%, followed by infrastructure 2.72%, energy 1.61%, cyclical consumer goods 1.40%, health 1.22%, technology 0.71%, property 0.70%, finance 0.58%, and non-cyclical consumer goods 0.44%.