iShares MSCI Indonesia ETF crashes 15% but upgraded to Buy on rebound potential

The iShares MSCI Indonesia ETF (EIDO) plunged 15% after MSCI warned Indonesia's market might be excluded from major indices, triggering fears and a sharp sell-off. Despite risks like a bank-heavy portfolio, high volatility, and recent dividend cuts, the ETF trades at a low valuation near 6x earnings and a PEG ratio close to 1, suggesting undervaluation. The analyst upgraded EIDO to a Buy, arguing that negative sentiment and the MSCI reclassification fears are overblown, and technical indicators point to a strong rebound. This presents a potential buying opportunity as the market may have bottomed after the sharp decline.

EIDO's market cap stands at $403.42 million as of Oct 17, 2026 04:02 WIB, reflecting significant investor caution following the MSCI reclassification news. The ETF's price on Pluang dropped 14.64% that day to USD 9.97, with heavy selling pressure as 82% of order activity was sell orders. Typical holding time on Pluang is 77 days, indicating moderate investor turnover despite the recent sharp decline.