Jakarta shares plunge after downgrade shock
JAKARTA — Indonesia’s stock market is no longer worthy of “emerging market” status, MSCI said ‌on Friday, laying out a plan to remove it from a series of indexes tracked by investment funds, a shock move that sparked the steepest one-day drop in Jakarta shares since 1998.
Jakarta shares plunged dramatically after MSCI downgraded Indonesia's stock market status. The Indonesian capital market's benchmark index plummeted by 11.6%, marking the sharpest one-day drop since 1998. MSCI's decision led to a loss of "emerging market" status for Indonesia in influential MSCI indexes, sparking the largest single-day decline since 1998.
The rupiah weakened by as much as 0.8% against the dollar. Indonesia's senior economic minister expressed doubt about the timing of the downgrade during a meeting in Bangkok, where the IMF and World Bank were convening. The Jakarta Stock Exchange indicated it had taken measures to improve transparency and market integrity but requested further clarification on the downgrade rationale.
Indonesia could become the largest economy in the "standalone" group if classified under this new status, which would exclude Indonesian stocks from global indexes tracked by billions of dollars in passive investment.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Jakarta shares plunge after downgrade shock bangkokpost.com
