Indonesian Stocks Retreat After MSCI Review

Indonesian equities slipped 58 points or 0.9% to 6,318 in Thursday morning trade, reversing a rally the day before. Losses were broad-based, led by basic materials, cyclicals, and healthcare. Sentiment soured after MSCI’s August review confirmed no new inclusions and 11 removals from its key indices, citing a strict global “freeze” policy. While Indonesia retains its Emerging Markets status, the weight of local equities has been trimmed, with changes effective after market close on August 31, 2026. Meanwhile, U.S.stock futures were mixed following Wall Street’s mostly higher close overnight, supported by softer inflation that eased Fed hike concerns. Domestically, downside was cushioned by reports that the government will reclaim part of state-company dividends to build a fiscal buffer fund. Notable laggards included ESSA Industries (-4.2%), Adaro Andalan (-2.8%), Merdeka Battery (-2.7%), and Sumber Alfaria Trijaya (-2.2%), underscoring the pressure across sectors.

Indonesian shares rose 51 points or 0.8% to 6,319 in early deals on Wednesday, halting losses in the prior two sessions amid widespread gains across major sectors led by infrastructure, energy, basic materials, and cyclicals. sentiment improved following fresh data showing July car sales surged 33%, hinting at recovery in the automotive sector. Traders also took note of President Prabowo’s nomination of acting BI Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, a move seen as providing policy continuity. Still, upside was tempered by overnight weakness on Wall Street and caution ahead of MSCI’s August 2026 Review later today, with rebalancing effective after August 31. Domestic concerns also lingered as retail sales fell for a third straight month in June, weighed by softness in discretionary categories. Standout movers included Indosat (8.4%), Petrindo Jaya Kreasi (5.6%), Bumi Resources (2.8%), and Japfa Comfeed (1.8%).

Indonesian stocks lost 30 points or 0.5% to 6,36 on Tuesday morning trade, extending losses from the prior session and edging toward their weakest level in a week. A negative lead from Wall Street overnight weighed on sentiment amid rising oil prices on uncertainty about when the Strait of Hormuz could reopen. Traders also turned cautious ahead of domestic retail sales data due later today, following May’s sharp drop driven by higher non-subsidised fuel costs. Added caution stemmed from the upcoming MSCI August 2026 Review, set for August 12, with rebalancing changes effective after August 31. Still, losses were partly capped by President Prabowo’s nomination of acting Bank Indonesia Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, easing leadership concerns. Energy, financials, and non-cyclicals dragged, while transport and basic materials lent modest support. Major laggards included Mitra Adiperkasa (-3.4%), Bumi Resources (-2.1%), and Bank Central Asia.