Jakarta. Jakarta Composite Index (JCI) ended slightly higher on Friday, rising 0.08%, or 4 points, to 6,177 after swinging sharply between 6,117 and 6,215 as investors weighed MSCI’s latest concerns over market transparency against easing geopolitical tensions in the Middle East and expectations of prolonged US monetary tightening.

RTI data showed trading volume reached 31.7 billion shares, with turnover totaling Rp 25.78 trillion ($1.44 billion) across more than 1.7 million transactions. Decliners slightly outnumbered gainers, with 342 stocks falling, 332 advancing, and 141 remaining unchanged.

Pilarmas Investindo Sekuritas said market sentiment was shaped by a mix of global and domestic factors, including the implementation of a tentative peace agreement between the United States and Iran that helped ease geopolitical tensions and pushed global oil prices lower.

The agreement was followed by the lifting of a US maritime blockade on Iran. However, US Vice President JD Vance said any economic relief for Tehran would depend on the country’s compliance with the terms of the deal.

At the same time, investors remained cautious over the US Federal Reserve’s hawkish stance.

“The Fed’s hawkish signals have strengthened expectations of additional rate hikes through the end of the year, even after the central bank decided to hold its benchmark rate,” Pilarmas wrote in a research note on Friday. According to the latest projections, 9 of the 19 Federal Open Market Committee officials still see room for at least one more interest rate increase this year to curb inflation.

Domestically, Pilarmas highlighted the results of MSCI’s latest Accessibility Review, which maintained Indonesia’s classification as an emerging market while flagging the need for improvements in market governance and transparency.

The brokerage noted that MSCI downgraded Indonesia’s score for Information Flow, citing concerns over limited transparency in share ownership and the risk of coordinated trading practices.

“MSCI emphasized that the main challenge facing Indonesia’s capital market is not liquidity, but governance, transparency, and information disclosure. These conditions could increase risk perceptions among global investors,” Pilarmas said.

Meanwhile, Stockbit Sekuritas said Indonesia continues to rank among the strongest emerging markets in Asia despite the downgrade in one assessment category.

“Overall, Indonesia remains one of the best-performing markets among Asian emerging economies. Only China and Malaysia offer more comprehensive market accessibility criteria, while the gap with frontier market Vietnam remains wide,” Stockbit said in a note.

Stockbit added that MSCI’s latest review did not include any comments regarding the ongoing freeze on Indonesia-related market classification measures. The assessment focused solely on qualitative accessibility criteria and did not address matters related to free-float adjustments, additions to the MSCI Investable Market Index, or migration across market-cap segments.

“Further clarification, including any decision regarding the freeze, is expected in the Annual Market Classification Review,” Stockbit said.

Investors are now awaiting MSCI’s Annual Market Classification Review, scheduled for June 24 Indonesia time, for greater clarity on whether the freeze will be lifted or maintained and whether Indonesia’s emerging market status will remain unchanged.

Regional markets traded mixed on Friday, with exchanges in China and Hong Kong closed for the Dragon Boat Festival holiday.

Japan’s Nikkei 225 fluctuated between gains and losses after fresh data showed core consumer inflation remained unchanged. Analysts, however, expect price pressures to accelerate in the coming months following the Bank of Japan’s recent decision to raise its benchmark interest rate to a three-decade high of 1%.

South Korea’s Kospi fell 0.5%.

On Wall Street, stocks rallied overnight, recovering most of the previous session’s losses as gains in major technology shares lifted sentiment. The S&P 500 advanced 1.1% to 7,500, the Dow Jones Industrial Average rose 0.1% to 51,564, and the Nasdaq Composite jumped 1.9% to 26,517.

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