Indonesia Stocks Plunge 12%, Worst Since 1998, After MSCI Standalone Warning
MSCI is trading near its 52-week low of $501.08 (12% above the low).
Summary
MSCI opened a consultation Thursday on reclassifying Indonesia from emerging-market to standalone status, which would strip the country's equities from its main indexes tracked by global funds. Jakarta's benchmark plunged nearly 12% Friday — its worst day since 1998 — triggering a 30-minute trading halt, with year-to-date losses now around 40% and the rupiah at 18,070 per dollar. The standalone warning wiped about $65 billion off Indonesian equities, with the Jakarta Composite Index falling 11.6% and the rupiah down as much as 0.8%. This escalates MSCI's January warning of a possible frontier downgrade, which itself sparked a roughly $80 billion rout. MSCI said progress has not been consistent and cited continued suspected coordinated trading and weak enforcement; Citi called standalone status 'unambiguously worse' than frontier, since every emerging-market-benchmarked passive dollar would have to exit with no frontier inflow offset. MSCI takes feedback through April and will announce its final decision by end of June 2027, with a possible interim update during the consultation.
Updated with a Reuters report · What changed
Updates
· Reuters — MSCI's standalone warning wiped about $65 billion off Indonesian equities, with the Jakarta Composite Index falling 11.6% and the rupiah down as much as 0.8%.
At the time of this announcement, MSCI was trading at $563.00 on NYSE in the Finance sector, with a market capitalization of approximately $41.8B. The 52-week trading range was $501.08 to $644.77. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.