MSCI Revises Rules for Stocks with Extreme Price Surges

Global index provider Morgan Stanley Capital International (MSCI) has changed its screening rules for stocks that show extreme price increases (EPI). The rule is effective from the August 2026 review. “Stocks flagged as EPI with a Foreign Inclusion Factor (FIF) greater than or equal to 0.75 will be excluded from the EPI screening and will be eligible for addition to the Standard Index, provided they meet all other index inclusion requirements,” MSCI stated in an announcement on Friday, 17 July 2026. Meanwhile, stocks with a FIF below 0.75 will not be included in the Standard Index and will be reassessed in the next review.

For stocks exhibiting EPI that are included in the Small Cap Index, treatment will be based on their market capitalisation. Stocks with a full market capitalisation below 1.8 times the Standard Index threshold, or a free-float market capitalisation below 1.8 times half the threshold, will be retained in the Small Cap Index. Conversely, stocks with a full market capitalisation and free-float market capitalisation equal to or above 1.8 times the threshold will not be added to the Standard Index. These stocks will also be removed from the Small Cap Index. “But they will remain in the investable market universe for reassessment for inclusion in the Standard Index at the next review,” MSCI said.

MSCI has currently frozen Indonesian stocks. It previously removed six Indonesian companies from the Global Standard Index as a result of the rebalancing in May. The six issuers removed from the Global Standard Index are 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, or Alfamart, was moved into the Global Small Cap Index.