Indonesia to drop tightly held stocks from benchmark index
In short
Indonesia will remove stocks with tightly held ownership from its main stock index. The change is meant to help avoid a possible downgrade in market status by MSCI Inc.
The reporting does not say which stocks are affected or when the change starts. It is unclear how much this will move the market.
What the reporting says
Indonesia will remove stocks with concentrated ownership from its benchmark equities index, according to a publisher-supplied summary. The move is described as part of efforts to avert a possible downgrade of the market’s status by MSCI Inc., but the reporting does not say which stocks are affected or when the change takes effect. The immediate market impact and any formal implementation details are not stated.
Why it matters
Indonesia will remove stocks with concentrated ownership from its benchmark equities index, based on a publisher-supplied summary. The stated purpose is to help avoid a possible downgrade of its market status by MSCI Inc. The available reporting does not identify the stocks involved, the effective date, or whether MSCI has made any final decision.