Analyst Says Stocks with High Ownership Concentration Lead to Narrow Liquidity and Volatile Prices

JAKARTA, KOMPAS.com - The Indonesia Stock Exchange (BEI) has released a list of stocks with high ownership concentration. This structure is assessed to make stock prices more susceptible to extreme movements.

Capital market analyst Reydi Octa stated that dominance in ownership by a handful of parties limits the shares available to the public.

“Prices tend to move more extremely,” Reydi told Kompas.com on Saturday (4/4/2026).

This condition also draws attention from global index providers such as Morgan Stanley Capital International (MSCI). Stocks with low free float are considered to inadequately meet the requirements for inclusion in indices.

Free float refers to the number of shares available for public trading, excluding controlling and corporate ownership.

“This means stocks with overly concentrated ownership will struggle to enter indices or risk being removed,” he said.

“So the key is not just looking at price increases, but understanding the ownership structure before entering,” Reydi added.