By Amanda Lee and Ying Xian Wong
Global index provider MSCI Inc. has flagged more concerns about Indonesia's market, dealing a fresh hit to one the world's worst-performing stock markets as it faces a potential downgrade next week.
Issues raised included limited transparency of shareholding structures and indications of coordinated trading that undermined proper pricing, MSCI said in a review Thursday.
"These issues materially limit international institutional investors' ability to assess true free float and to rely on observed market prices for portfolio construction and index replication," MSCI said.
It downgraded Indonesia's information flow criterion--which gauges the quality, timeliness and availability of market information to international investors--to negative.
