The Indonesia Stock Exchange (IDX) will hold an online meeting with\nglobal stock-index provider Morgan Stanley Capital International (MSCI)\non Monday (19 October). Scheduled for 3.30pm WIB, the meeting aims to\nseek clarification about MSCI\u2019s decision to place Indonesia\u2019s capital\nmarket under consultation.<\/p>\n
IDX President Director Jeffrey Hendrik said the meeting followed\nMSCI\u2019s announcement on Friday morning (16 October), Indonesia time. The\nannouncement was considered unexpected by the IDX, the Financial\nServices Authority (OJK), MSCI participants and global investors.<\/p>\n
\u201cWe will have an online meeting with MSCI this afternoon. We\nrequested a meeting as soon as possible. I will provide an update after\nit,\u201d Jeffrey told reporters at the IDX media room in Jakarta on\nMonday.<\/p>\n
Jeffrey stressed that the IDX and OJK had not previously known about\nthe planned announcement. He said MSCI\u2019s decision had come\nunexpectedly.<\/p>\n
Most MSCI participants and global investors who had been in contact\nwith the IDX had also not anticipated the decision.<\/p>\n
Meanwhile, to ease panic and prevent investors from making decisions\namid uncertainty, the IDX lowered the lower auto-rejection (ARB) limit\nfrom 15% to 7%. The policy automatically limits share-price declines to\nthe stipulated threshold.<\/p>\n
Jeffrey acknowledged that the measure was unusual. However, he said\nit was intended to give investors time to assess new information before\ndeciding on their investments.<\/p>\n
\u201cWe will review this policy, but based on our review from this\nmorning to midday, it has been quite effective in easing panic,\u201d he\nsaid.<\/p>\n
Jeffrey said the Jakarta Composite Index (JCI) was down about 5% by\nthe close of Monday\u2019s first trading session (19 October). The decline\nhad therefore not reached the 7% ARB limit.<\/p>\n
The IDX hopes investors will assess developments carefully and\ncontinue to consider companies\u2019 fundamentals before making investment\ndecisions.<\/p>\n
Jeffrey added that the IDX had been monitoring the situation from\nFriday through Sunday. During that period, it also held discussions with\nvarious parties and listened to feedback from market participants.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/after-fridays-msci-announcement-idx-seeks-clarification-this-afternoon-1792396253", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }