Profit-taking Pressures IHSG
The Indonesia Composite Stock Index (IHSG) closed lower on Tuesday afternoon as investors took profits ahead of the Idul Adha 1447 Hijriah holiday and public holidays. The IHSG fell 76.16 points, or 1.23%, to 6,130.19, while the LQ45 blue-chip index dropped 10.81 points, or 1.71%, to 620.40.
“Factors behind the index decline include profit-taking ahead of the holidays and MSCI rebalancing,” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her analysis in Jakarta on Tuesday (26/5).
International factors, including recent US strikes targeting Iranian missile sites and suspected minesweeping vessels, despite growing peace hopes, added negative sentiment to the market. The rupiah weakened 0.29% to Rp17,795 per US dollar, even as the US dollar index also declined.
Meanwhile, Brent crude oil rose 1.97% while WTI fell 4.97%. “The IHSG is expected to trade between 6,000 and 6,200 on Friday (29/5),” Lim added.
Opening lower, the IHSG remained in negative territory throughout the first session and stayed in the red until closing. According to the IDX-IC Sectoral Index, only one sector gained, led by infrastructure up 0.28%. Ten sectors declined, with the industrial sector dropping the most at 3.66%, followed by property and non-primary consumer goods sectors, each down 2.30% and 2.27%.
The top gainers were MGNA, ARTA, NZIA, ELFI, and AWAN, while the top losers were MSIN, RISE, TALF, BHAT, and ASPR. Trading frequency reached 1,964,477 transactions involving 24.88 billion shares worth Rp18.09 trillion. Of the 821 traded stocks, 241 rose, 447 fell, and 133 remained unchanged.
Asian regional indices closed mixed: Nikkei fell 188.19 points (0.29%) to 64,970.00, Shanghai Composite dropped 7.20 (0.17%) to 4,145.27, Hang Seng declined 6.58 points (0.03%) to 25,599.45, and Straits Times Index rose 41.75 points (0.82%) to 5,028.80.
Finance Minister Purbaya Yudhi Sadewa stated that Indonesia’s economic fundamentals remain strong despite the IHSG’s decline due to global sentiment and US-Iran tensions.
DPR Commission XI Chairman Mukhamad Misbakhun said MSCI index rebalancing should be a momentum to improve and strengthen Indonesia’s capital market fundamentals.
Capital market analyst Hendra Wardana highlighted the impact of the May 2026 MSCI rebalancing, which triggered a capital outflow of Rp50.63 trillion and pressure on the IHSG.
A market practitioner noted that the announcement of MSCI rebalancing on 12 May 2026 sparked reactions from domestic stock market participants and the IHSG.
The IHSG closed 3.54% lower at 6,094.94 on Thursday (21/5), with raw materials and energy sectors leading the decline due to plans by state-owned single exporters.
Danantara CEO Rosan Roeslani assessed that bank stocks on the BEI are currently undervalued with a price-to-book value below 1x, despite sharp IHSG corrections.
The Indonesia Stock Exchange (BEI) stated that the removal of HSC category stocks from MSCI and FTSE Russell indices is a short-term consequence for long-term capital market improvements.
Pressure from global Morgan Stanley Capital International index rebalancing continues to loom over the domestic stock market after six major Indonesian stocks were removed from MSCI.