Indonesia will remove stocks with concentrated ownership from its benchmark equities index, the Jakarta Composite Index, as a move to prevent a possible downgrade by MSCI Inc. CEO of the Indonesia Stock Exchange, Chandra Asmara, said the aim is to create a 'more credible and integrity-driven price index.' High shareholder concentration accounts for about 18% of the index's weighting. The exchange will also publish names of investors owning at least 1% of shares and indicate whether holders are affiliated with the companies. These steps are part of regulatory efforts against coordinated trading practices and opaque ownership highlighted by MSCI.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing