iShares MSCI Indonesia ETF

EIDO

Market cap $290M

Indonesia's central bank snapped a long-running pause as it delivered its first rate hike in over two years.

About 10 companies from countries including Indonesia, South Korea and Singapore have filed for Hong Kong listings this year and some others are exploring options, an ​exchange executive said, as the market's robust IPO momentum lures global firms.

Indonesia is committed to rehabilitate 12 million hectares (29.65 million acres) of degraded land ​and potentially integrate new tree-planting efforts ‌with its plan to develop carbon offset projects, its forestry minister said in a statement on Tuesday.

The iShares MSCI Indonesia ETF (NYSEARCA:EIDO) gives U.S.

CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.

iShares MSCI Indonesia ETF (NYSEARCA:EIDO) pays dividends twice a year, and the headline yield draws investors seeking emerging market income.

ASEAN's dividend opportunity is underpinned by diverse and evolving market characteristics. The FTSE ASEAN Index, which captures the large- and mid-cap companies listed in the five ASEAN markets - Singapore, Malaysia, Indonesia, Thailand and Philippines - has delivered a 10-year average dividend yield of 3.57%. Across multiple market cycles over the past 25 years, a back-test of the FTSE ASEAN ex REITs Target Dividend Index's strategy showed notable resilience during market downturns and lower overall volatility compared with the broader ASEAN market.

The iShares MSCI Indonesia ETF has only gained 2% this year and has grossly underperformed global and EM peers. Indonesian banks, comprising over 40% of EIDO, have faced sluggish loan growth, although stable NIMs in a dovish monetary setting reflect well. Recent government stimulus to the tune of $1B could lift Q4 GDP and 2026 prospects, while further rate cuts are expected from this month through Q1-26.

Indonesian equities appear attractively valued after a decade of underperformance in USD terms. The iShares MSCI Indonesia ETF (EIDO) offers convenient access but is highly concentrated and holds several richly valued or unprofitable names. Top holdings show a mix of strong historical growth and low P/E ratios, but the ETF includes triple-digit P/E and cash-burning companies.

Indonesia's growth surprised to the upside last quarter. Equity markets trade at a substantial discount to Asian emerging markets. Politically based sell-offs may create a solid entry point.