Some stocks excluded in Composite index as IDX starts new month
The Indonesia Stock Exchange (IDX) officially began excluding stocks with high shareholding concentration (HSC) from its benchmark index calculation on Monday as part of broader efforts to improve market quality.
The Indonesia Stock Exchange (IDX) commenced the exclusion of stocks with high shareholding concentration (HSC) from its benchmark index calculation on Monday. This move is part of an initiative to enhance market quality and governance. Initially, the bourse identified 80 HSC stocks, contributing to approximately 18 percent of the index's total weighting.
These stocks, such as PT Bayan Resources (BYAN) and PT Barito Renewable Energy (BREN), will no longer be included in the calculation of the IDX Composite index. However, the excluded stocks remain available for trading. The IDX Composite index opened at 5,039.54 points on Monday, marking a slight decline of 0.35 percent, but it recovered to a 0.95 percent gain by the second trading session.
The president director of IDX, Jeffrey Hendrik, explained that the removed HSC stocks' weight will be redistributed to other index constituents, similar to the delisting mechanism.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
