Jakarta (ANTARA) - The Chair of the Financial Services Authority\n(OJK) Board of Commissioners, Friderica Widyasari Dewi, stated that the\nadjustment to the Morgan Stanley Capital International (MSCI) index\ncomposition is not only experienced by Indonesian stocks but also occurs\nin several other Asian countries.<\/p>\n
For example, in the MSCI Global Standard Index, Japan recorded 14\nissuers exiting, Taiwan seven issuers exiting, Malaysia six issuers\nexiting, and South Korea three issuers exiting. Meanwhile, China,\nalthough adding 22 new issuers, also experienced 24 issuers exiting the\nindex.<\/p>\n
\u201cSo this reflects global portfolio allocation adjustments and fairly\nbroad market dynamics in the region, not merely Indonesia-specific\nissues,\u201d said Friderica, who is familiarly known as Kiki, in Jakarta on\nWednesday.<\/p>\n
According to her, the changes in the MSCI index composition are part\nof a periodic review mechanism based on several objective parameters,\nsuch as market capitalisation, free float, liquidity, and share price\ndynamics.<\/p>\n
This phenomenon is not only occurring in Indonesia but also in almost\nall Asia-Pacific markets in this review.<\/p>\n
Nevertheless, OJK views this situation as an important reminder to\ncontinue strengthening the quality and depth of Indonesia\u2019s capital\nmarket.<\/p>\n
\u201cOJK, together with all stakeholders, will continue to encourage the\nstrengthening of market integrity, improvement of free float and\nliquidity, expansion of the investor base, and enhancement of issuer\ngovernance so that the competitiveness of Indonesia\u2019s capital market\nbecomes stronger and sustainable,\u201d she said.<\/p>\n
Furthermore, Kiki also assured that the fundamentals of Indonesia\u2019s\nfinancial services sector remain resilient and stable.<\/p>\n
According to her, short-term volatility or global index changes do\nnot alter OJK\u2019s commitment to continue building a healthy, transparent,\nand credible market for domestic and global investors.<\/p>\n
\u201cGoing forward, we will also continue to strengthen coordination with\nthe Indonesia Stock Exchange (BEI), self-regulatory organisations\n(SROs), and all market participants to ensure that Indonesia\u2019s capital\nmarket becomes increasingly attractive, liquid, and investable in the\nlong term,\u201d she added.<\/p>\n
MSCI, the global index provider, announced the results of the review\nof the Indonesian market index in the MSCI May 2024 Index Review.<\/p>\n
In the review results, six Indonesian stocks were officially removed\nfrom the MSCI Global Standard Index. The six stocks are PT Amman Mineral\nInternasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT\nChandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA),\nPT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk\n(AMRT).<\/p>\n
Meanwhile, in the MSCI Small Cap Index, MSCI included the shares of\nPT Sumber Alfaria Trijaya Tbk (AMRT) in the small cap index or MSCI\nGlobal Small Cap Index.<\/p>\n
On the other hand, MSCI removed several stocks from the MSCI Global\nSmall Cap Index. Those stocks are PT Aneka Tambang Tbk (ANTM), PT Astra\nAgro Lestari Tbk (AALI), PT Bank Aladin Syariah Tbk (BANK), PT Bumi\nSerpong Damai Tbk (BSDE), PT Dharma Satya Nusantara Tbk (DSNG), PT\nIndustri Jamu dan Farmasi Sido Muncul Tbk (SIDO), PT Midi Utama\nIndonesia Tbk (MIDI), PT Mitra Keluarga Karyasehat Tbk (MIKA), PT MNC\nDigital Entertainment Tbk (MSIN), PT Pabrik Kertas Tjiwi Kimia Tbk\n(TKIM), PT Pacific Strategic Financial Tbk (APIC), PT Sawit Sumbermas\nSarana Tbk (SSMS), and PT Triputra Agro Persada Tbk (TAPG).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-states-that-changes-in-msci-index-composition-are-also-experienced-by-other-asian-stocks-1778669813", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }