Indonesian Stocks Plunge 11% as MSCI Threatens Removal From Global Indexes
Updated
Updated · The New York Times · Oct 16
Indonesian Stocks Plunge 11% as MSCI Threatens Removal From Global Indexes
3 articles · Updated · The New York Times · Oct 16
Summary
Jakarta stocks sank more than 11% on Friday, triggering a volatility halt and marking Indonesia’s worst one-day market drop since the 1998 Asian financial crisis.
MSCI said it had opened a consultation on cutting Indonesia’s classification two notches from emerging market to stand-alone status, a move that would remove the country from benchmark indexes tracked by trillions of dollars.
The warning sharply escalated an earlier review that had considered only a one-step downgrade to frontier market, catching investors off guard because MSCI had previously said it would assess progress next month.
Indonesia’s exchange has already lost nearly 40% this year, and the selloff deepened concerns about the fragility of Southeast Asia’s largest economy.