iShares MSCI Indonesia ETF EIDO jumps 7.2% as Jakarta rebounds
The Amplify Breakwave Tanker Shipping ETF BWET fell 8% as crude-freight rates pulled back from their peak, while the Dow rose and the Nasdaq finished flat.
Key takeaways
On Tuesday, Oct. 20, the iShares MSCI Indonesia ETF EIDO jumped 7.2%, the best gain among exchange-traded funds that do not use leverage, after stocks in Jakarta rebounded. BWET fell 8%, the steepest loss.
EIDO led; BWET was the steepest loss
The Dow Jones Industrial Average rose 1.02%, or 530 points, to 52,495.88. The iShares Russell 2000 ETF IWM rose 1.7%. The S&P 500 added 0.26%, to 7,711.06, and the Nasdaq Composite slipped 0.02%.
The average company rose more than the index. The Invesco S&P 500 Equal Weight ETF RSP, which gives every S&P 500 company the same weight, rose 1.2%, against that 0.26% for the index, where the largest companies count for more.
The Invesco QQQ Trust, Series 1 QQQ fell 0.1%, and the iShares Semiconductor ETF SOXX slipped 0.4%.
The Wall Street Journal said stocks reversed higher on hopes of progress in U.S.-Iran diplomacy. It also said generally strong earnings offset worries about the debt behind the artificial-intelligence boom.
Jakarta took stocks out of the index
EIDO rose 7.2% to $10.30. The Jakarta Composite Index closed up 5.6%, at 5,278.89.
After a Monday meeting with representatives of MSCI, the firm that builds the indexes many large stock funds track, the Indonesia Stock Exchange said it will remove 80 stocks with highly concentrated ownership from the Jakarta Composite. Jeffrey Hendrik, the exchange's president director, said those stocks are about 18% of the index's weight, and that they can still trade. He said the change was aimed at a "more credible and integrity-driven price index."
The exchange will also show whether an investor holding at least 1% of a company is affiliated with it. It has cut the daily limit on how far a share price can fall, to 7% from 15%.
"We believe this is a step in the right direction, with long-term market credibility more important than short-term index performance," said Henry Wibowo, director and co-founder of Alphagate Capital in Jakarta.
On Oct. 15, MSCI opened a consultation on moving its Indonesia indexes from emerging-market to standalone status.
Standalone status would take Indonesian stocks out of those indexes, and funds that follow the indexes would have to sell, including shares EIDO holds. MSCI has said it expects to decide by the end of June 2027, and to proceed unless it finds clear evidence of improvement. A freeze on certain index changes for Indonesian securities remains in place.
The bounce repaired only part of the damage. EIDO had fallen 17.7% over the Friday and Monday sessions, and Monday's close of $9.61 was the low of the past year. The share price is still down 44.9% in 2026.
EIDO dropped to $9.61, then bounced
Health care touched new highs
The State Street Health Care Select Sector SPDR ETF XLV rose 2.4% and touched a 52-week high. The State Street SPDR S&P Biotech ETF XBI rose 3.6%. Eli Lilly rose 3.5% and touched a 52-week high. Moderna rose 6.7%.
Equifax and 3M rose on their results
Equifax rose 11.3% to $176.54. Adjusted earnings were $2.26 a share, against a $2.20 estimate. The company cut the midpoint of its full-year revenue outlook to $6.661 billion, citing a weaker U.S. mortgage market. It said the midpoint of its adjusted earnings outlook fell by 4 cents, to $8.50.
3M rose 5.8% after adjusted earnings of $2.50 a share, against a $2.38 estimate. It raised its full-year adjusted earnings outlook to $9.10 to $9.15.
GM beat estimates and still fell
General Motors fell 6.8% to $77.09. Adjusted earnings of $3.70 a share beat a $3.63 estimate, and revenue of $50.02 billion beat $48.7 billion. The board approved a new $20 billion repurchase. The company said it expects about $2 billion of commodity inflation, the high end of its earlier range.
Chief Financial Officer Paul Jacobson said the Middle East conflict, the U.S.-Iran war, had added $400 million to this year's costs through higher prices for copper, steel and diesel.
Freight rates came off the peak
BWET fell 8% to $801.20. Over the past year the shares have traded between $15.41 and $1,051.94.
BWET is still far above its $15.41 low
The fund holds futures on the cost of shipping crude from the Middle East Gulf to China, through the Strait of Hormuz. Iran has been attacking commercial ships there in the U.S.-Iran war.
Lloyd's List reported on Oct. 19 that crude tanker rates were retreating from an epic peak as the pace of chartering slowed. It said the spike before that pullback had been driven by crude moving through the strait on shuttle ships.
Brent crude slipped 0.3% from its prior settle, to $109.19. The fund's drop was in the freight, not in the oil price.
Seoul sold its chipmakers
The Kospi fell 3.7% to 5,552.74. The Seoul Economic Daily reported net selling by foreign and institutional investors, declines in Samsung Electronics and SK Hynix, and analysts' distrust of the artificial-intelligence investment cycle.
Seoul's session ends before the U.S. market opens. The iShares MSCI South Korea ETF EWY fell 1.7% in New York.
Want more of our stories in Google’s Top Stories? Add etf.net as a preferred source on Google
