Jakarta (ANTARA) \u2013 Co-ordinating Economic Affairs Minister Airlangga\nHartarto said the weakening of the Jakarta Composite Index (IHSG) was a\nnormal occurrence when markets faced negative sentiment.<\/p>\n
The government is also monitoring developments in relation to Morgan\nStanley Capital International (MSCI), which has opened the possibility\nof downgrading Indonesia\u2019s stock market to standalone-market status.<\/p>\n
\u201cIt is normal for the market to fall when there is negative\nsentiment. But with the new seven per cent auto-rejection rule, things\nare relatively under control, and the index closed just above 5,000,\u201d\nAirlangga said at the Presidential Palace complex in Jakarta on\nMonday.<\/p>\n
Airlangga was responding to the IHSG\u2019s movement, which saw it briefly\nfall below 5,000 before closing above that level. He said fluctuations\nin the stock index were influenced by issues and sentiment developing in\nthe market.<\/p>\n
\u201cNo, that\u2019s just what it does \u2013 it goes up and down. It depends on\nthe issues and sentiment,\u201d he said.<\/p>\n
On the possibility that MSCI could downgrade Indonesia\u2019s stock market\nto standalone-market status, Airlangga said the process would continue\nuntil next year.<\/p>\n
\u201cIt\u2019s still June next year. They sometimes make a bit of a threat,\u201d\nhe added.<\/p>\n
The Indonesia Stock Exchange\u2019s (BEI) IHSG weakened on Monday\nfollowing the continued impact of an announcement by global stock market\nindex provider MSCI that it had opened a consultation on the possibility\nof changing the classification of Indonesia\u2019s capital market.<\/p>\n
The IHSG opened down 223.23 points, or 4.31 per cent, at 4,961.88.\nThe LQ45 index of 45 leading shares fell 28.06 points, or 5.52 per cent,\nto 480.50.<\/p>\n
The BEI has adjusted the lower auto-rejection limit for shares to an\nasymmetric seven per cent, from 15 per cent previously. The measure will\napply from 19 October to 31 December 2026.<\/p>\n
The policy, backed by the Financial Services Authority (OJK), is\nintended to keep securities trading orderly, fair and efficient while\nhelping to contain market volatility.<\/p>\n
The adjustment is also intended to give investors time to assess and\nabsorb the information available.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/airlangga-says-ihsg-fall-is-due-to-negative-sentiment-1792407115", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }