Indonesia Index Hits 6-Year Low Amid Growing MSCI Reclassification Concerns
MSCI MSCI Inc
$569.08 -1.05%
View chart & analysis → - 1The Indonesian benchmark index plummeted on Monday, recording a drop of over 5% to its lowest level in 6 years.
- 2Goldman Sachs warned of an expected $5.6 billion passive fund outflow, equivalent to 18 days of average daily trading volume for MSCI Indonesia IMI constituents.
- 3There is a risk of an additional $2.7 billion outflow if FTSE Russell takes similar measures in the future.
So what's the key point?
The Indonesian stock market has fallen significantly to its lowest level in 6 years. Caution is needed as a large amount of money, totaling $5.6 billion, could leave the market if index classification methods change.
Source CNBC · View original ↗
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