MSCI to drop GoTo from Indonesia index on liquidity concerns
The ride-hailing giant, once among Indonesia’s most valuable firms, has seen its market value fall from US$29 billion to US$3.2 billion.
Indonesian ride-hailing company GoTo Gojek Tokopedia will be removed from MSCI's Indonesia index at the end of the month, according to the index provider. MSCI suspended changes to GoTo's inclusion in its indexes in late May due to concerns that low liquidity could impede index-tracking investors from trading the stock in sizable quantities.
The company's market value has plummeted from approximately US$29 billion to US$3.2 billion, with its shares trading at a mere 50 rupiah, or less than a US cent, since mid-May. This price point represents the minimum trading price on the exchange's main trading boards. Prior to MSCI's decision, FTSE Russell had already excluded GoTo from its global equity index series mid-cap index in June, as the company's listing on the Indonesian stock exchange's development board did not meet FTSE Russell's eligibility criteria.
In August, MSCI made changes to its All Country World Index by adding 55 companies and removing 92 companies.
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- MSCI to drop GoTo from Indonesia index on liquidity concerns freemalaysiatoday.com
