Indonesia Stock Exchange

The current smoke forecast for the next week appears to be easing, thankfully.

An index provider's consultation to consider reclassifying Indonesia to a standalone market saw the Jakarta Composite Index experience its largest one-day drop since 1998.

Brian Freitas had warned that Indonesia seeing its weight drop because of a potential change in free float methodology in mid-January, before the warning on 28 January.

He now thinks there is a risk foreign investors continue to reduce their holdings ahead of a final decision.

I mean, the other thing that people will notice that's happening in Indonesia right now is that MSCI, the financial indexing company, just at the weekend said they may have to downgrade the status of Indonesia as a market where it's basically a standalone market and you're basically saying don't invest there.

And one of the reasons given is that it's very hard to trace ownership and to know who owns the stocks on the Jakarta Stock Exchange, if the real owners are being disclosed or if there are other owners whose identity is not disclosed.

But also with investigations, after the 2014 Transboundary Haze Act, this Singapore law trying to prevent this, they pursued six companies.

The pursuit of those companies really ran into the ground.

Now, for a more optimistic note, Indonesian stocks have shown some remarkable resilience following recent market measures.

After a hefty 14.8% drop over just two days, the Jakarta index rebounded by 4%.

This market, which has experienced a 40% downturn this year, has been under pressure, especially after MSCI warned about a potential downgrade regarding ownership transparency.

The response from investors, however, shows a glimmer of hope and highlights the complex nature of confidence in turbulent economic times.

The conference has been pushed to 2027, following deadly attacks by Yemen's Iran-aligned Houthi rebel groups, which have been increasing attacks on Saudi infrastructure.

Jakarta Index calls companies to avoid MSCI exclusion.

Indonesia's Stock Exchange said it will cut thinly traded companies from its main index after MSCI threatened to eject Indonesia from its emerging market index over the treatment of minority shareholders in Indonesia.

Being removed from the index would cause billions of dollars to be divested from the Indonesian market.

The benchmark stock index in Indonesia plunged over 5% today to its lowest level in six years as concerns over potential downgrade by MSCI intensified fears of further foreign investor outflows.

The Jakarta Composite Index tumbled to its lowest level since early October 2020, extending a bruising sell-off in Indonesian equities.

MSCI, the index provider, last week proposed reclassifying Indonesia directly from an emerging market to a standalone status, raising the prospect of the country's removal from major global equity benchmarks.

MSCI is expected to make a final decision by June next year with the potential reclassification hinging on whether the Indonesian authorities can demonstrate meaningful improvements in market governance and transparency.

China's Shanghai Composite rebounded after the release of better-than-expected economic data, including GDP and home prices.

Over in Indonesia, stocks are extending their route, with the Jakarta composite down more than 5%.

MSCI has said Indonesia could lose its emerging market status, potentially triggering billions of dollars in foreign outflows.

Here in Singapore, the Straits Times index is flat.

Indonesian markets extended their sell-off with stocks deepening their worst route in almost 30 years and losses spreading to bonds and the rupiah after MSCI warned the country may face a two-step downgrade.

The benchmark Jakarta Composite Index fell 3.6% on Monday, extending a 12% plunge from Friday and further cementing Indonesia's position as the world's worst performing stock market.

The 10-year bond yield jumped seven basis points to the highest in four months, while the rupiah weakened 0.2%.

MSCI said Friday it's considering downgrading Indonesia from an emerging market to standalone status, going well beyond the potential move to frontier status that it flagged in January.

And so look at what the IDX composite has done year to date.

And it was back in January that this was initially threatened.

And since January, the Jakarta composite is down 42.2%.

That's the index.