IHSG rebounds 0.46% as market watches MSCI review

IHSG closed up 23.34 points, or 0.46 percent, at 5,073.77 on Monday, while LQ45 rose 0.79 percent to 522.39. The gain was seen as a technical rebound after a sharp correction in recent weeks, not a sign of a strong trend reversal. Market attention remains on the MSCI review scheduled for Nov. 11. Uncertainty over index composition, free float and the outlook for Indonesia's classification is still limiting the recovery in investor confidence. Rully Arya Wisnubroto of Mirae Asset Sekuritas said domestic sentiment such as third-quarter economic growth of 5.47 percent offered only limited support. At the same time, the market is also watching the direction of The Fed's interest rates, US Treasury yields and the US dollar, which could pressure capital flows to emerging markets, including Indonesia.