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 is set to be removed from MSCI's Indonesia index by the end of the month due to liquidity concerns, according to the index provider's announcement on Wednesday. The company's market value has plummeted from an estimated US$29 billion to just US$3.2 billion, with its shares trading at an intractable 50 rupiah, or less than a US cent, since mid-May.
MSCI suspended changes to GoTo in its indexes in late May, citing the company's low liquidity as a hindrance for index-tracking investors who struggle to trade the stock in sufficient size, given the minimum trading price of 50 rupiah on the exchange's main boards. Additionally, FTSE Russell removed GoTo from its global equity index series mid-cap index in June, as the company's listing on Indonesia's development board did not meet FTSE Russell's eligibility criteria for the GEIS.
In its August index review, MSCI added 55 companies to its All Country World Index and removed 92 companies.
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- MSCI to drop GoTo from Indonesia index on liquidity concerns freemalaysiatoday.com
