Gotrade News - Indonesia's benchmark stock index IHSG closed down 0.46% at 7,559.38 on Tuesday (April 21). Selling pressure intensified after MSCI announced it would freeze rebalancing of Indonesian stock indices for May 2026.
Key Takeaways:
- MSCI froze rebalancing citing insufficient ownership transparency and free float standards
- Analysts project IHSG trading in the 7,480-7,620 range with potential correction to 7,245-7,447
- Recommended stocks include BMRI, PANI, PTRO, CDIA, and BRPT on a buy-on-weakness strategy
The MSCI decision became the primary sentiment driver weighing on the domestic index. Phintraco Securities analysts project the IHSG to trade sideways in the 7,480-7,620 range after closing a gap near 7,527.
MNC Securities analyst Herditya Wicaksana noted the IHSG correction had reached its previously projected minimum target. Technically, the index appears to be at the end of wave [iv] with potential testing at the 7,580-7,601 level.
Support levels sit at 7,488 and 7,351, while resistance is at 7,700 and 7,861. Short-term volatility could test the 7,245-7,447 range if selling pressure continues.
MSCI is still evaluating the impact of Indonesia's capital market reforms on investment accessibility. The index provider will use shareholding disclosure data above 1% to adjust free float calculations.
Current restrictions include a freeze on Foreign Inclusion Factor increases and no new additions to MSCI Investable Market Indexes. Plans to raise the minimum free float threshold to 15% remain under regulatory review.
Despite the broader index weakness, foreign investors were net buyers of shares in SSMS, EMAS, and BNBR. This selective foreign buying occurred even as the overall market declined.
Phintraco Securities recommends BMRI, PANI, PTRO, SSIA, and ACES for today's session. MNC Securities recommends a buy-on-weakness strategy for BRPT, CDIA, RATU, and PTRO.
The market also awaits Bank Indonesia's interest rate decision and March 2026 credit growth data. Both releases could serve as near-term catalysts for index movement.
Sources: Kumparan, Kabar Bursa, Katadata
