FX.co ★ Indonesian Equities Fall Further Ahead of MSCI Review

Indonesian stocks fell 30 points, or 0.5%, to 6,360 in Tuesday morning trade, extending the previous session’s losses and moving toward their weakest level in a week. Sentiment was pressured by an overnight decline on Wall Street and rising oil prices amid uncertainty over when the Strait of Hormuz will reopen. Traders were also cautious ahead of domestic retail sales data due later in the day, following May’s sharp contraction driven by higher non-subsidised fuel costs. Additional wariness stemmed from the upcoming MSCI August 2026 Review, scheduled for August 12, with index rebalancing to take effect after August 31. Even so, losses were partially limited after President Prabowo nominated acting Bank Indonesia Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, which helped ease concerns over policy continuity. Sector-wise, energy, financials, and non-cyclicals weighed on the index, while transport and basic materials provided modest support. Notable decliners included Mitra Adiperkasa (-3.4%), Bumi Resources (-2.1%), and Bank Central Asia.