Indonesian Stocks Fall After MSCI Removes Six Companies
The Jakarta Composite Index fell nearly 2% after MSCI removed six firms from its main index. Regulators say reforms will continue despite the market decline.
The Jakarta Composite Index fell 1.92% on Wednesday after MSCI removed six major companies from its Indonesia global standard index. The drop took the benchmark to its lowest level in over a year following the quarterly review. Investors now face potential forced selling from passive funds ahead of the index rebalancing on May 29.
### MSCI Purge Hits Major Conglomerates The index provider removed CHANDRA ASRI PACIFIC TBK PT, DIAN SWASTATIKA SENTOSA TBK, and BARITO RENEWABLES ENERGY TBK from its primary Indonesia index. PETRINDO JAYA KREASI TBK PT and Amman Mineral International were also cut. Shares in most of these firms tumbled more than 10% during Wednesday morning trading.
