- MSCI review threatens Indonesia's stock market status
- The Indonesia Stock Exchange (IDX) holds routine technical meetings with MSCI regarding the review of market criteria for Indonesia.
FSA Enforces Auto-Rejection Limits Amid MSCI Review of Indonesian Market
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Following MSCI's announcement that it initiated consultations regarding a potential reclassification of the Indonesian capital market, market sentiment dropped. To maintain orderly trading, the Indonesia Stock Exchange, supported by the Financial Services Authority, enforced a new asymmetric lower "Auto Rejection" limit of seven percent.
From antaranews.com
Why it matters
The MSCI consultation on the Indonesian equity market's investability status caused market turbulence, including the JCI shedding 4.31 percent at the morning bell. The new regulatory limits were implemented to curb extreme market swings and maintain stability in the national capital market.
The Indonesia Stock Exchange holds routine technical meetings with MSCI regarding the review of market criteria for Indonesia, which MSCI has been reviewing.
From antaranews.com
Who's involved
- MSCIInitiated consultations on reclassifying the Indonesian capital market to a "standalone market" status.
- Indonesia Stock ExchangeEnforced the new seven percent "Auto Rejection" limit to maintain orderly trading.
- IndonesiaThe island country whose capital market is being reviewed by MSCI.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IndonesiaSpeculative
Investor confidence in the national capital market could be negatively affected by the MSCI consultation and market turbulence.
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The entities involved
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MSCI
American financial service provider