MSCI Inc will strip Barito Pacific Tbk PT from its global standard index, dealing a blow to Indonesia as it fights to retain its emerging-market status. The index provider announced the decision on Wednesday evening, following a warning issued in October over market access and transparency. Passive funds tracking the indexes must liquidate their holdings by the close of trading on November 30.
MSCI to Remove Barito Pacific from Indexes
Global index provider MSCI will remove Barito Pacific from its global standard index. The decision deals a blow to Indonesia as authorities attempt to avoid a market downgrade.
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The move marks the latest contraction for the benchmark index, which has culled eight companies since May, leaving just nine firms remaining. Bumi Resources Minerals Tbk will also be demoted from the global standard index to the small-cap tier. Indonesia's benchmark index has fallen 40% this year, making it the world's worst-performing major stock market amid concerns over shareholding concentration and coordinated trading.
