SINGAPORE/BENGALURU – Global index provider MSCI will remove one Indonesian company from its indexes, it said on Nov 9, dealing a blow to the country’s efforts to avoid a downgrade and retain its emerging-market status.
The latest setback comes a month after MSCI warned Indonesian stocks could be removed from its indexes next year and the market relegated to “standalone” status, a much harsher fate than the one the index provider first threatened in January.
The deletions will force funds that track its indexes to sell the shares, and take effect after the close of trading on Nov 30.
Barito Pacific will be removed from MSCI’s global standard index, while Bumi Resources Minerals will be moved from that index to the small cap index.
MSCI Indonesia index currently has nine firms after the index provider culled six companies in May and two more in August. REUTERS
