RRI.CO.ID, Jakarta - The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) opens Friday with a strong likelihood of highly volatile movement. This anticipated fluctuation stems from global fund managers aggressively adjusting their portfolios to align with the Morgan Stanley Capital International (MSCI) index rebalancing, which is set to take effect immediately following today's market close.

At the opening bell, the JCI dropped by 17.42 points or 0.28 percent, landing at the 6.112,77 mark. Concurrently, the LQ45 index, which tracks the market's 45 most liquid and blue-chip stocks, shed 10.51 points or 1.69 percent to sit at 609,89.

"For today's trading, the JCI still has the potential to fluctuate with a tendency to volatility," remarked Head of Research at Phintraco Sekuritas, Ratna Lim, in her market analysis published on Friday, May 29, 2026, as quoted by Antara.

Ratna elaborated that the effective date for the MSCI index rebalancing on Friday, May 29, triggers massive portfolio adjustments among global fund managers. This structural reshuffling can easily induce heavy sell-offs, particularly targetting stocks being removed from the MSCI index, effectively driving up broader market volatility.

Amid the trading volatility, domestic sentiment is being closely tied to government plans regarding a new incentive scheme for electric vehicles (EVs) utilizing nickel-based batteries. One option under active consideration is a government-borne value-added tax (PPN) mechanism, with relief rates ranging from 40 percent to a full 100 percent.

The state plans to differentiate between nickel-based and non-nickel-based battery architectures, with nickel-based vehicles heavily tipped to secure larger financial incentives. However, as the finer details remain under intense regulatory debate, the official rollout of this policy will be delayed by one month. Looking forward, the final execution of this plan serves as a major positive catalyst for listed companies producing nickel-based EV batteries.

On the international front, broader market sentiment has caught a tailwind from reports indicating a potential 60-day ceasefire extension between the United States and Iran. This diplomatic breakthrough is widely seen as a temporary relief mechanism for prevailing geopolitical risks in the Middle East.

Although the proposal is still awaiting final approval from US President Donald Trump, international markets have already reacted positively to the ongoing negotiations. Global oil prices have subsequently mirrored this sentiment, moving variably as overall volatility begins to recede, underscoring expectations of a stabilized global energy supply.

The international equity landscape displayed highly mixed performances prior to Friday's Asian open. Looking first at Wall Street gains, major US indices closed positive on Thursday, with the Dow Jones Industrial Average edging up 0.05 percent, the S&P 500 gaining 0.58 percent, and the Nasdaq Composite advancing 0.84 percent.

In contrast to these gains, a European slump saw European stock markets close in unison on Thursday, as the Euro Stoxx 50 fell 0.27 percent, the UK's FTSE 100 slipped 0.75 percent, Germany's DAX dipped 0.34 percent, and France's CAC 40 dropped 0.23 percent.

Finally, there was notable Asian market divergence in early Friday trading, where Tokyo’s Nikkei surged 1,195.38 points or 1.85 percent to 65.888,50, Hong Kong’s Hang Seng rose 0.27 percent to 25.074,50, and Singapore’s Straits Times index climbed 0.73 percent to 5.025,73. Conversely, mainland China’s Shanghai Composite defied the upward regional trend, losing 18.31 points or 0.45 percent to trade at 4.080,32. ***