Regulations
Global index provider MSCI has downgraded Indonesia’s information flow criterion to negative in its latest review, raising concerns over the “investability” of the country’s stock market due to limited transparency in shareholding structures and signs of coordinated trading behavior.
A woman takes a photo of an electronic display showing negative movements across the Indonesia Stock Exchange (IDX) Composite index on Feb. 2 at the bourse’s South Jakarta headquarters. (Antara/Sulthony Hasanuddin)
Global index provider MSCI has downgraded Indonesia’s information flow criterion to negative in its latest review, raising concerns over the “investability” of the country’s stock market.In its Global Market Accessibility Review published on Thursday afternoon, MSCI said the ongoing opacity in shareholding structures and indications of coordinated trading undermined proper price formation.
“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,” reads the review.
