PALMOILMAGAZINE, JAKARTA – MSCI Inc. has officially announced the results of its May 2026 global index review, with several Indonesian palm oil plantation companies removed from the MSCI Small Cap Indexes in the latest rebalancing exercise.
The palm oil-related stocks excluded from the index include PT Astra Agro Lestari Tbk, PT Dharma Satya Nusantara Tbk, PT Sawit Sumbermas Sarana Tbk, and PT Triputra Agro Persada Tbk.
The decision has attracted significant market attention as MSCI indexes are widely used by global institutional investors and fund managers as benchmarks for portfolio allocation, including investments in the Indonesian stock market.
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According to MSCI’s official announcement released on Wednesday (13/5/2026), the latest review also removed several other companies from sectors such as mining, property, healthcare, and retail from the MSCI Small Cap Indexes.
The revised index composition will become effective after the market closes on 29 May 2026 and will officially take effect starting 1 June 2026.
Market participants believe the removal of plantation stocks from the MSCI index may trigger portfolio rebalancing by foreign investors and global asset managers that closely track MSCI benchmarks.
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Despite the index exclusion, analysts noted that the fundamentals of Indonesia’s palm oil sector remain relatively strong, supported by elevated global crude palm oil (CPO) prices, rising biodiesel demand, and stable export prospects.
Over the past several months, palm oil stocks have continued to benefit from positive market sentiment as CPO prices remained at high levels amid tightening global vegetable oil supplies and concerns over potential weather disruptions linked to El Niño conditions.
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MSCI stated that the index adjustments are part of its routine evaluation process, which considers factors such as market capitalization and stock liquidity across global exchanges. (P2)
