Jakarta (ANTARA) \u2013 The Indonesia Stock Exchange (IDX) will hold an\nonline meeting with global stock index provider Morgan Stanley Capital\nInternational (MSCI) on Monday (19 October) at 3.30pm Western Indonesian\nTime to seek clarification about its decision to place Indonesia\u2019s\ncapital market under consultation.<\/p>\n
IDX President Director Jeffrey Hendrik said the meeting followed\nMSCI\u2019s announcement on Friday morning (16 October), Indonesia time,\nwhich came as a surprise to the IDX, the Financial Services Authority\n(OJK), MSCI participants and global investors.<\/p>\n
\u201cWe will have an online meeting with MSCI this afternoon. We\nimmediately asked for time to meet with them. I will provide an update\nafter the meeting,\u201d Jeffrey told reporters at the IDX Media Room in\nJakarta on Monday.<\/p>\n
Jeffrey said the IDX and OJK had not previously known that the\nannouncement was forthcoming, and described it as unexpected. Most MSCI\nparticipants and global investors in contact with the exchange were also\nsurprised by the decision, he added.<\/p>\n
Jeffrey said the announcement had prompted a reaction among market\nparticipants, causing panic and confusion amid what they viewed as\nheightened uncertainty.<\/p>\n
To ease the panic and prevent investors from making decisions in\nuncertain conditions, the IDX adjusted the lower limit for an automatic\ntrading halt triggered by falling share prices, known as Auto Rejection\nBawah (ARB), from 15% to 7%.<\/p>\n
Jeffrey acknowledged that the measure was unusual, but said it was\nintroduced to give investors time to assess developments before making\ninvestment decisions. \u201cWe will review this policy, but based on our\nreview from this morning until midday, it has been quite effective in\neasing panic,\u201d he said.<\/p>\n
The Jakarta Composite Index (JCI) was down about 5% by the close of\nthe first trading session on Monday, and had therefore not reached the\n7% ARB threshold.<\/p>\n
The exchange hopes investors will consider developments carefully and\nreassess company fundamentals when making investment decisions, Jeffrey\nsaid.<\/p>\n
He added that the IDX had monitored the situation from Friday through\nSunday and held discussions with various parties, including market\nparticipants, to hear their views.<\/p>\n
After its meeting with MSCI on Monday afternoon, the IDX will provide\nan update on the discussions, including clarification of the\nconsiderations behind MSCI\u2019s decision to place Indonesia under\nconsultation.<\/p>\n
At the close of the first trading session on Monday, the JCI had\nfallen 261.85 points, or 5.05%, to 4,923.26.<\/p>\n
Share trading recorded 850,000 transactions, involving 15.90 billion\nshares worth Rp10.01 trillion. Forty-three shares rose, 782 fell and 138\nwere unchanged.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-to-meet-msci-this-afternoon-and-seek-clarification-1792396337", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }