Indonesia Stocks Close 3.6% Lower as MSCI Weighs Standalone Status

Indonesia’s Jakarta Composite Index closed 3.6% lower Monday as MSCI considered a classification change that would remove the country’s indexes from its emerging- and frontier-market indexes. The decline followed an 11.57% plunge Friday, the benchmark’s steepest one-day loss since January 1998. MSCI is seeking feedback on a proposal to move Indonesia from Emerging Market directly to Standalone status. The change has not been approved. Under MSCI’s classification system, standalone indexes are outside its Emerging Markets and Frontier Markets indexes. The proposal identifies opaque shareholding structures, suspected coordinated trading and insufficient evidence of meaningful enforcement as concerns.

Source: TokenPost