Jakarta. Jakarta Composite Index (JCI) opened higher on Friday, recovering from recent losses as investors positioned ahead of MSCI’s index rebalancing while monitoring developments in US-Iran negotiations and the Federal Reserve’s interest rate outlook.

The benchmark index gained 15 points, or 0.26%, to 6,146 in early trading, moving within a range of 6,111-6,148.

RTI data showed trading volume reached 6.32 billion shares with turnover of Rp 3.73 trillion ($209 million) across more than 247,000 transactions. Advancers totaled 249 stocks, while 276 declined and 208 were unchanged.

Market attention remains focused on developments in US-Iran negotiations, energy price movements, and the outlook for US interest rates as inflation remains elevated while economic growth slows, according to Kiwoom Sekuritas Indonesia.

Investors are also watching MSCI's latest index rebalancing, which takes effect at Friday’s market close and could trigger portfolio adjustments by global fund managers tracking the benchmark indices.

Phintraco Sekuritas said the rebalancing may lead to significant selling pressure on stocks removed from MSCI indices and increase overall market volatility.

The stocks removed from the MSCI Global Standard Index are Amman Mineral Internasional (AMMN), Barito Pacific (BRPT), Chandra Asri Pacific (TPIA), Petrindo Jaya Kreasi (CUAN), and Dian Swastatika Sentosa (DSSA). Meanwhile, Sumber Alfaria Trijaya (AMRT) was downgraded from the Global Standard Index to the Small Cap Index.

The MSCI Small Cap Index also removed several Indonesian stocks, including Aneka Tambang (ANTM), Astra Agro Lestari (AALI), Bank Aladin Syariah (BANK), Bumi Serpong Damai (BSDE), Dharma Satya Nusantara (DSNG), Industri Jamu dan Farmasi Sido Muncul (SIDO), Midi Utama Indonesia (MIDI), Mitra Keluarga Karyasehat (MIKA), MNC Studios International (MSIN), Pabrik Kertas Tjiwi Kimia (TKIM), Pacific Strategic Financial (APIC), Sawit Sumbermas Sarana (SSMS), and Triputra Agro Persada (TAPG).

Separately, the government is preparing a new incentive scheme for electric vehicles using nickel-based batteries. One proposal under discussion would see the government cover between 40% and 100% of value-added tax (VAT), with different incentive structures for nickel-based and non-nickel batteries.

Nickel-based battery vehicles are expected to receive larger incentives, although implementation has been delayed by one month as discussions continue.

Kiwoom said the policy could support the development of Indonesia’s downstream energy industry and encourage new investment in renewable energy projects. The brokerage added that the measure could become a positive catalyst for companies producing nickel-based EV batteries.

Indonesia’s trade surplus is also expected to widen in April. Kiwoom estimates the surplus will rise to around $3.78 billion from $3.32 billion in March, supported by higher primary commodity exports amid a weaker rupiah.

“Despite this, the increase in the trade surplus is expected to remain limited as oil imports are projected to stay high in line with still-strong domestic fuel consumption amid unchanged major fuel prices,” Kiwoom said.

Overnight on Wall Street, the S&P 500 rose 0.6% to a fresh record high after fluctuating between gains and losses earlier in the session. The Dow Jones Industrial Average added 24 points, or less than 0.1%, while the Nasdaq Composite climbed 0.9%, with both indexes also reaching record highs.

Across Asia, markets traded mostly higher. As of 9:12 a.m. Jakarta time, Japan’s Nikkei advanced 1.83%, South Korea’s Kospi gained 2.26%, Hong Kong’s Hang Seng rose 0.54%, and China’s Shanghai Composite edged up 0.07%.

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