The Jakarta Composite Index (IHSG) concluded trading on Friday, May 29, 2026, marginally lower, shedding 0.05 percent to close at the 6,127 level. The day saw a mixed performance across the board, with 271 stocks posting gains, while 409 experienced declines and 137 remained stagnant. Trading activity was robust, registering a total transaction volume of 47.2 billion shares, with a significant transaction value reaching IDR 50.1 trillion. The frequency of transactions during the day was recorded at 2.37 times.
Earlier on Friday morning, the IHSG had opened weaker, dropping 18 points to start the day at 6,112. However, the index demonstrated resilience, subsequently strengthening by 1.43 percent to reach 6,128 by the close of the first trading session, indicating some intraday recovery before its slight dip at the final close.
Looking ahead, Hans Kwee, Co-founder of PasarDana, has issued a forecast predicting a period of high volatility for the stock market. This anticipated fluctuation is primarily attributed to the upcoming Morgan Stanley Capital International (MSCI) index rebalancing, which is set to take effect on June 1, 2026, and often prompts significant portfolio adjustments.
Despite the impending rebalancing, Kwee observed that most fund managers had likely already made their portfolio adjustments well in advance, rather than waiting until the final deadline of May 29, 2026. “What’s interesting is that there’s no significant panic visible in the market, even though some stocks removed from the MSCI index have experienced downward pressure,” he stated in a written declaration on Thursday, May 28, 2026, underscoring the market’s relatively calm reaction.
According to Kwee, the removal of certain issuer stocks from the MSCI index is predominantly a technical adjustment and does not necessarily reflect a decline in the companies’ fundamental performance. He suggests that the period immediately following the MSCI rebalancing could mark a bottom for the IHSG’s decline, presenting a strong opportunity for the stock market to rebound and recover, driven by sound corporate fundamentals in the future.
Summary
The Jakarta Composite Index (IHSG) closed slightly lower on May 29, 2026, falling 0.05 percent to 6,127 amid a mixed day of trading. Despite an initial drop in the morning, the index showed intraday resilience before settling at its final value, with 47.2 billion shares traded throughout the session.
Market expert Hans Kwee anticipates continued volatility due to the upcoming MSCI index rebalancing on June 1, 2026. However, he notes that the market remains calm as most fund managers have already adjusted their portfolios, suggesting that the post-rebalancing period could provide a potential bottom and recovery opportunity for the market.