Why Investors Should Avoid Panic Over MSCI Rebalancing

TEMPO.CO, Jakarta - Hans Kwee, co-founder of investment platform PasarDana, urged investors to remain calm and avoid panic selling after MSCI announced changes to its stock indices affecting several Indonesian companies.

Hans said the removal of several issuers from the MSCI index was largely technical, linked to weighting methodology and liquidity considerations, rather than reflecting deteriorating corporate fundamentals.

“Many market players and fund managers had already anticipated the removal of these stocks from the MSCI index over the past few months,” Hans said in a written statement on Wednesday, May 13, 2026.

He noted that some passive fund managers are expected to use the final adjustment period on May 29, 2026, to rebalance their portfolios in line with MSCI’s latest review.

According to Hans, the market volatility triggered by the announcement could create opportunities for investors to accumulate blue-chip and small-cap stocks that have fallen sharply due to panic selling and forced portfolio adjustments by passive funds.

“This momentum can be used by domestic investors to objectively reassess their portfolios,” he said.

Separately, Hasan Fawzi, executive head of capital market supervision, derivatives, and carbon exchange at Indonesia’s Financial Services Authority (OJK), said the recent decline in the Composite Stock Price Index (JCI) remained within a normal range following the MSCI announcement.

“From our perspective, even the affected stocks did not experience automatic rejection below the allowable trading limit today,” Hasan said during a press conference at the Indonesia Stock Exchange on Wednesday.

He added that average trading value, volume, and transaction frequency remained relatively strong.

In Wednesday’s trading session, the JCI opened at 6,763 before falling 1.81 percent to 6,734.5 by the close of the first session. Trading volume reached 26.1 billion shares with a transaction value of Rp10.27 trillion (US$620 million), while trading frequency stood at 1.47 million transactions.

Under MSCI’s latest review announced on Wednesday, six Indonesian stocks were removed from the MSCI Global Standard Index. One of them, retail operator PT Sumber Alfaria Trijaya Tbk (AMRT), which operates the Alfamart convenience store chain, was added to the MSCI Global Small Cap Index. MSCI also removed 13 stocks from the Global Small Cap Index.

Read: List of 18 Indonesian Stocks Removed From the MSCI Index

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