MSCI Rebalancing May Trigger High Volatility in IHSG on 29 May

The Indonesia Composite Index (IHSG) is expected to experience high volatility during Friday’s (29 May 2026) trading session. The turbulence stems from passive fund managers adjusting portfolios in line with Morgan Stanley Capital International’s (MSCI) rebalancing announcement on 12 May 2026. Hans Kwee, Co-Founder of PasarDana and a capital market practitioner, noted that following MSCI’s announcement, most fund managers have already made gradual portfolio adjustments without waiting until the final rebalancing date of 29 May 2026. “Indonesia’s stock market may face high volatility on Friday, 29 May 2026, as passive fund managers are likely to rebalance their portfolios in line with MSCI’s announcement on 12 May 2026,” Hans said in a press release on Thursday, 28 September 2026. “Notably, there is no significant panic in the market, despite some MSCI-removed stocks facing downward pressure. There remains potential for further declines, particularly for shares excluded from the MSCI Global Standard Index and MSCI Small Cap Index,” he added. It is noted that MSCI has removed six Indonesian stocks from the MSCI Global Standard Indexes: PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). AMRT shares are not entirely removed from MSCI indices as they have been transferred to the MSCI Small Cap Indexes. Subsequently, PT Midi Utama Indonesia Tbk (MIDI), PT Mitra Keluarga Karyasehat Tbk (MIKA), PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Pacific Strategic Financial Tbk (APIC), PT Sawit Sumbermas Sarana Tbk (SSMS), PT Triputra Agro Persada Tbk (TPAG), and PT MNC Digital Entertainment Tbk (MSIN). MSCI stated that all changes will take effect after trading closes on 29 May 2026 and become effective from 1 June 2026.