Investing.com — Indonesian stocks plunged 7% on Wednesday after MSCI Inc. raised serious concerns about the market’s investability and warned it could downgrade Indonesia from emerging to frontier-market status.
The index compiler announced it would immediately pause certain index changes to its gauges until Indonesian regulators address persistent issues regarding the market structure. MSCI will halt all index additions and freeze increases to the number of shares considered available to investors.
In a statement, MSCI cited “fundamental investability issues” in Southeast Asia’s largest market, specifically pointing to tightly held ownership structures of listed companies. The index provider also expressed concerns about coordinated efforts to distort prices in the market.
This action represents a significant setback for Indonesia’s stock market, as a potential downgrade to frontier-market status would likely trigger outflows from funds that track MSCI’s emerging market indexes.
Source: https://www.investing.com/news/stock-market-news/indian-it-services-stocks-slump-join-global-rout-as-ai-disruption-fears-grow-4483589
INDONESIA STOCK MARKET PLUNGES 7% AFTER MSCI HALTS INDEX CHANGES
Investing.com — Indonesian stocks plunged 7% on Wednesday after MSCI Inc. raised serious concerns about the market’s investability and warned it could downgrade Indonesia from emerging to frontier-market status.
The index compiler announced it would immediately pause certain index changes to its gauges until Indonesian regulators address persistent issues regarding the market structure. MSCI will halt all index additions and freeze increases to the number of shares considered available to investors.
In a statement, MSCI cited “fundamental investability issues” in Southeast Asia’s largest market, specifically pointing to tightly held ownership structures of listed companies. The index provider also expressed concerns about coordinated efforts to distort prices in the market.
This action represents a significant setback for Indonesia’s stock market, as a potential downgrade to frontier-market status would likely trigger outflows from funds that track MSCI’s emerging market indexes.
Source: https://www.investing.com/news/stock-market-news/indian-it-services-stocks-slump-join-global-rout-as-ai-disruption-fears-grow-4483589