US EditionIndonesian Stocks Tumble 7% After MSCI Applies Interim Freeze on Investability Risks
- Indonesian stocks dropped 7% after MSCI raised concerns about investability and warned of a potential downgrade to frontier-market status on January 28.
- The Jakarta Composite Index experienced its steepest decline in nine months, with losses reaching 8.8% before closing down 7.4%.
- MSCI announced a freeze on index changes until transparency issues regarding ownership and trading practices are addressed.
- Indonesia's exchange operator is collaborating with MSCI and regulators to improve transparency related to stock ownership and prevent market manipulation.
11 Articles
11 Articles
Indonesian stocks plunge on downgrade warning
JAKARTA - Indonesian stocks slumped 7% on Wednesday after the index provider MSCI flagged investability risk, citing a lack of transparency in ownership structure and free-float data, and raising the possibility of a downgrade to “frontier market” status.
Indonesian stocks plunge as MSCI freezes index changes
INDONESIAN stocks fell 7.9% on Wednesday after index provider MSCI flagged investability risks and said it would apply an interim freeze on certain index-related changes, adding pressure to a market already weighed down by persistent outflows.
Indonesian stocks tumble 7% after MSCI applies interim freeze on investability risks
Indonesia's stock market experienced a sharp 7% drop early Wednesday after MSCI announced a freeze on certain index changes. This decision stems from investor concerns regarding free float data transparency. Indonesian authorities are actively engaged in discussions with MSCI to resolve these issues, aiming to restore market confidence.
MSCI's decision to freeze rebalancing triggered a collapse in the Jakarta Composite Index (JCI) and a trading halt. So, what is MSCI, what is its role, and why is it shaking up the Indonesian stock market? Read on.
The Jakarta Composite Index (JCI) closed in the red in its final trading session. The JCI fell 659.67 points, or 7.35%, to 8,320.56. The Jakarta Composite Index...
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