Coal Company Stock Hits ARB Following FTSE Removal
Jakarta, CNBC Indonesia - Shares of PT Daaz Bara Lestari Tbk (DAAZ) plummeted to the lower price limit, known as Auto Rejection Bawah (ARB), following FTSE Russell’s announcement of the quarterly review results for the FTSE Global Equity Index Series (GEIS) June 2026 edition. According to FTSE Russell’s announcement, DAAZ was removed from the Micro Cap category alongside two other companies, PT Hillcon Tbk (HILL) and PT Mulia Industrindo Tbk (MLIA). DAAZ shares fell 14.12% to Rp1,460 per share with a market capitalisation of Rp2.92 trillion during midday trading. The stock has also declined 28.4% over the past week and 37.8% in the past month. The changes from the review will take effect on Monday, 22 June 2026, after the market closes on Friday, 19 June 2026. FTSE Russell also stated that the review changes could still be revised until the market closes on 5 June 2026. After 8 June 2026, the decision will be final, with further changes only made under exceptional circumstances per FTSE Russell’s recalculation policy. As a note, in previous announcements, FTSE Russell stated that if a company is subject to a warning from exchange and financial authorities regarding concentrated shareholding, where shares are controlled by a small group, the stock will be removed from the index in the next review. “To ensure index integrity and replicability, FTSE Russell will remove affected securities at zero price in the June 2026 review, effective from market open on Monday, 22 June 2026,” the official announcement stated. The ‘zero price’ policy was implemented because FTSE assessed that HSC shares’ liquidity has deteriorated materially. Institutional investors managing index funds (passive funds) are concerned they may not find sufficient buyers (counterparties) if forced to exit the shares suddenly. The zero price policy is typically applied by FTSE to shares of bankrupt companies still in the index or those long-suspended or affected by sanctions, making them difficult to trade.