MSCI is considering downgrading Indonesia from an emerging market to a standalone market, which could lead to Indonesia's exit from key indices and trigger capital flight and rupiah depreciation. The iShares MSCI Indonesia ETF (EIDO), heavily invested in Indonesian banks, faces significant risk due to this potential downgrade. Despite attractive bank valuations, the ETF's sensitivity to market shocks and currency weakness could push valuations lower. The analyst rates EIDO as a sell due to unfavorable risk/reward and unresolved structural risks, though long-term potential exists if reforms are implemented.
The iShares MSCI Indonesia ETF (EIDO) is currently trading at its 52-week low of USD 9.94, reflecting significant market pressure. On Pluang, EIDO shows a 1-day decline of 14.90% with a market cap of $404.53M as of Oct 17, 2026 22:41 WIB.
