MSCI Drops 2 Indonesian Stocks From Indexes as Ownership Concentration Rule Bites
Updated
Updated · Bloomberg · May 12
MSCI Drops 2 Indonesian Stocks From Indexes as Ownership Concentration Rule Bites
5 articles · Updated · Bloomberg · May 12
PT Barito Renewables Energy and PT Dian Swastatika Sentosa were removed from MSCI indexes in the provider’s quarterly review, extending a warning issued last month that such stocks could be excluded.
MSCI acted after the Indonesia Stock Exchange in April identified both companies among firms tightly held by small groups of investors, triggering the index compiler’s concentrated-ownership screen.
Shares of the two companies fell after the decision, which hit stocks linked to some of Indonesia’s richest billionaires.
The move underscores growing scrutiny of free float and investability in Indonesia’s market, where tightly controlled companies risk losing benchmark status.
Will Indonesia's billionaires sacrifice corporate control to rejoin MSCI's influential global indexes?
As passive funds increasingly dominate markets, are investors blindly buying into concentrated risk?