The Indonesian stock market rebounded from an earlier decline, and the country's sovereign wealth fund said it has been buying local stocks. The biggest increase in the benchmark Jakarta Composite Index was 1.8%, and earlier it fell 2.7%. The rebound continued the upward trend of the previous two days, in contrast to the decline in most Asian markets. On Friday, the Indonesian stock market experienced its biggest decline in nearly 30 years. MSCI warned that Indonesia's position in the emerging market is difficult to secure. The stock market reversed its decline after Indonesia's sovereign wealth fund Danantara said it had taken steps to support the market. “Valuations, especially those of large banks, are becoming more and more attractive, but there is still a risk of further sell-off due to ongoing uncertainty related to MSCI,” said PT MNC Sekuritas analyst Herditya Wicaksana. “This is the dilemma investors are facing right now.”

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