Jakarta. Jakarta Composite Index (JCI) rebounded sharply on Friday, closing up 97.40 points, or 1.18%, at 8,329, snapping a recent slump triggered by concerns over a potential MSCI freeze and multiple global downgrades of Indonesian equities.

The benchmark index traded within a range of 8,167 to 8,408, with trading volume reaching 57.82 billion shares and turnover totaling Rp 41.69 trillion ($2.48 billion). Market activity was brisk, with more than 3.39 million transactions, while 551 stocks advanced, 194 declined, and 65 ended flat.

Gains were led by a rally in several small- and mid-cap stocks. Eratex Djaja (ERTX) surged 35%, followed by Ever Shine Textile (ESTI), which jumped 34.67%, and Nusantara Alma (NZIA), up 34.09%. Alfa Energi Investama (FIRE) also posted strong gains, climbing 33.77%.

On the losing side, Royalindo Investa Wijaya (INDO) tumbled 14.97%, while Kioson Komersial Indonesia (KIOS) slid 14.94%. Langgeng Makmur Industri (LMPI) dropped 14.93%, and VKTR Teknologi Mobilitas (VKTR) fell 14.89%.

Pilarmas Investindo Sekuritas said the index jumped after days of extreme volatility sparked by MSCI warnings and rating downgrades by Goldman Sachs and UBS on Indonesian stocks.

According to Pilarmas, selling pressure eased as regulators moved to respond to MSCI’s concerns, including plans to enforce a minimum 15% free-float requirement for all listed companies on the Indonesia Stock Exchange, both newly listed and existing issuers. In the short term, the brokerage warned the policy could pressure stocks with low free float, as companies may need to release more shares to the public—potentially increasing volatility and weighing on prices.“This is especially relevant for small-cap issuers or companies with highly dominant controlling shareholders,” Pilarmas wrote in its Friday research note. Still, Pilarmas noted that higher free float could ultimately improve market liquidity, narrow bid-ask spreads, and support healthier price discovery.

The brokerage also cited breaking news surrounding the resignation of the IDX president director, describing the move as a form of personal accountability amid recent market turbulence. Pilarmas said the decision was aimed at safeguarding investor confidence and maintaining stability in the domestic capital market.

Finance Minister Purbaya Yudhi Sadewa said the resignation sent a positive signal to investors.

“In my view, this is a positive signal. It shows that we are managing issues quickly and seriously,” Purbaya said, adding that the move would likely be welcomed by investors who understand capital market mechanisms.

He said investors who had been hesitant should now gain greater confidence that market direction would improve, potentially supporting investment in both the capital market and the real sector, including foreign direct investment (FDI).

Meanwhile, Asian markets retreated, ahead of a possible announcement by Donald Trump on his nominee to replace Jerome Powell as head of the Federal Reserve. Powell, appointed by Trump in 2017, has faced repeated criticism from the former president for not cutting interest rates aggressively enough.

Chinese stocks weakened, with Hong Kong’s Hang Seng falling 2.1% to 27,387. Shares of ports operator CK Hutchison Holdings dropped 4.6% after Panama’s Supreme Court ruled that a subsidiary’s port concession at both ends of the Panama Canal was unconstitutional, advancing US efforts to limit China’s influence over the strategic waterway.

The Shanghai Composite slid 1% to 4,117.

In Japan, the Nikkei 225 edged down 0.1% to 53,322, pressured by losses in artificial intelligence-related stocks. Chip testing equipment maker Advantest fell 4.5%, while Disco Corp slipped 1.7%.

Overnight, US stocks closed with modest moves. The S&P 500 slipped 0.1%, the Dow Jones Industrial Average rose 0.1%, and the Nasdaq Composite fell 0.7%.