MSCI considered downgrading Indonesia from emerging-market to standalone status, beyond its earlier warning of a possible frontier-market reclassification. (EPA Images pic)JAKARTA: Indonesian stocks rebounded from their worst rout in nearly four decades after authorities unveiled fresh measures aimed at averting a potential two-step downgrade by MSCI.
The benchmark Jakarta Composite Index rose as much as 3.2%, clawing back some of a roughly 15% two-day plunge that was its steepest since 1989 and cemented the country’s position as the world’s worst-performing stock market.
The Indonesia Stock Exchange said it will remove companies with highly concentrated ownership from the calculation of the benchmark index, following a meeting between exchange officials and MSCI representatives on Monday. The bourse will also expand ownership disclosures by identifying whether investors holding at least 1% of a company’s shares are affiliated with the company.
