InfoSAWIT, JAKARTA – Morgan Stanley Capital International (MSCI) has officially announced the results of its May 2026 global index review, with several Indonesian palm oil companies removed from the MSCI Small Cap Indexes during the latest rebalancing exercise.

Among the plantation companies excluded from the index are PT Astra Agro Lestari Tbk, PT Dharma Satya Nusantara Tbk, PT Sawit Sumbermas Sarana Tbk, and PT Triputra Agro Persada Tbk.

The MSCI decision has drawn attention from market participants, as MSCI indexes are widely used by global institutional investors as benchmarks for portfolio allocation, including investments in Indonesian equities.

According to MSCI, the changes will become effective after market close on May 29, 2026, and will officially take effect on June 1, 2026.

The removal of plantation stocks from the MSCI Small Cap Index may trigger portfolio adjustments by global investors and fund managers that track the index as part of their investment strategies.

Despite the index exclusion, analysts believe the fundamentals of Indonesia’s palm oil sector remain relatively strong, supported by elevated global crude palm oil prices, growing biodiesel demand, and stable export prospects.

In recent months, plantation stocks have also benefited from positive sentiment driven by tight global vegetable oil supplies and concerns over potential El Niño-related weather disruptions.

MSCI stated that the index adjustments were part of its routine evaluation process based on market capitalization and stock liquidity across global exchanges. (T2)