BNI to join MSCI indices

BNI to join MSCI indices

HONG KONG (Reuter): PT Bank Negara Indonesia (BNI) will join the Morgan Stanley Capital Index roster of companies at the regular reshuffle planned for May 30, an MSCI spokesman said on Thursday.

"Bank Negara Indonesia is not in the index right now but it will be included with the new announcements made at the end of next month," said Gordon Chen at the MSCI.

BNI will join all MSCI indices that include Indonesia, but the most important index in many ways is the All Country Far East Free ex-Japan, Chen said.

BNI's inclusion is not expected to have much effect upon Indonesia's weighting within the indices.

"It's all determined by price but I don't think the impact will be that great at this point," Chen said.

BNI's inclusion could force fund managers who use the MSCI as a benchmark to buy stock to match their index weighting, creating demand for one of Jakarta's biggest stocks.

BNI will join the index at the close May 30 and start to trade on June 2, he said.

BNI was trading up 74 rupiah at 1425 rupiah on Thursday.

Several Indonesian companies toll road operator Citra Marga Nusaphala and business group Bimantara Citra are also included in the new MSCI index.