Indonesian stocks recovered slightly on Tuesday after authorities in Jakarta announced measures, including restrictions on selling, following a record sell-off of about $82 billion triggered by MSCI's warning that it could remove Indonesia from its global indexes. Jakarta's benchmark index rose 4% after hitting a six-year low in the previous session, but is still down about 40% this year. MSCI is considering moving Indonesia from “emerging markets” to “standalone” status, a harsher downgrade than expected, over concerns about ownership transparency and coordinated trading. The Indonesia Stock Exchange will exclude stocks with highly concentrated ownership, which account for roughly 18% of index weight, and has halved the daily down limit to 7% from 15%. Fitch said these risks reinforce the concerns behind its March revision of Indonesia's outlook to negative, although the consultation announcement itself has no material immediate credit implications.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on dailysabah.com ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/20/2026 | 1,691.97 |
| Change that session | +0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Too Broken For Frontier : Indonesian Markets Suffer Worst Rout Since 1998 As MSCI Threatens The "Argentina Treatment"
MSCI warned that Indonesia may face a two-step downgrade, moving straight from Emerging Market to 'Standalone' status and skipping Frontier, which deepened the selloff in Jakarta. The Jakarta Composite Index fell 11.6% on Friday, its biggest one-day drop since January 1998, then closed down a further 3.6% on Monday. Since its January 20 peak, the index has lost about 45%, and according to Reuters, about $350 billion in market value has been wiped out since January. MSCI cited opaque shareholding structures, suspected coordinated trading and weak enforcement; Jakarta raised the minimum free float to 15% from 7.5%, but MSCI concluded the problems were too deep for Frontier status. MSCI will announce its decision by June 30, 2027, while OJK has fined entities 2.1 trillion rupiah ($116 million) linked to manipulation in three stocks.
- Indonesia Stock Exchange Cuts Lower Limit for More Stocks to Cool Volatility
The Indonesia Stock Exchange (IDX) on Tuesday lowered the automatic lower limit from 7% to 1 rupiah for stocks priced between 11 and 14 rupiah, aiming to curb a selloff triggered by MSCI's proposal to downgrade Indonesia to “standalone” status, which would remove it from its global emerging and frontier market indexes. The exchange said the change is meant to ensure orderly, fair and efficient trading and support better price discovery, and it will remain in effect until December 31 this year. Stocks priced at 15 rupiah or above keep the 7% lower limit, while the 1-rupiah limit for stocks below 10 rupiah still applies. Sell orders below the lower limit price will be automatically rejected by the trading system.
- Too Broken For Frontier: Indonesian Markets Suffer Worst Rout Since 1998 As MSCI Threatens The Argentina Treatment
MSCI warned Indonesia could be downgraded straight from Emerging Market to 'Standalone' status, skipping Frontier, because concerns over opaque shareholding, coordinated trading and weak enforcement persist despite reforms. The Jakarta Composite Index fell 11.6% on Friday and 3.6% on Monday, a near-15% drop over two sessions that is steeper than any two-day stretch in the 1998 Asian crisis, and it is down about 45% from its January 20 peak. About $350 billion in market value has been wiped out since January as foreign investors exit and the rupiah weakens. The OJK fined entities tied to manipulation in three stocks 2.1 trillion rupiah ($116 million), and MSCI will decide by June 30, 2027.
- Indonesia Could Lose Emerging Market Status
On 15 October 2026 MSCI opened a consultation on reclassifying Indonesia from Emerging Market to Standalone Market status, citing opaque shareholding structures and suspected coordinated trading. Indonesia's weight in the MSCI Emerging Markets Index fell to 0.43% on 30 September 2026 from 1.16% at the end of 2025, as the free-float-adjusted value of the MSCI Indonesia Index dropped about 55%, from US$119.1 billion to US$53.4 billion. Feedback is open until 30 April 2027, with a decision due by 30 June 2027, and the freeze on Indonesian index changes remains. MSCI said it could proceed unless the consultation shows clear evidence of better governance, noting that Indonesia's reforms, including a roadmap to a 15% minimum free float, have seen little enforcement. If the reclassification goes ahead, funds tracking emerging-market indexes could be forced to sell Indonesian shares regardless of company fundamentals.
- Indonesian exchange seeks to calm market after record two - day rout
Indonesian stocks posted their steepest two-day sell-off on record after MSCI said it was considering moving the country from “emerging market” to “standalone” status. The Jakarta benchmark fell 11.6 per cent on Friday and 3.6 per cent on Monday, hitting a six-year low intraday. The rupiah weakened to 18,030 per dollar, near June's record low of 18,190, while the 10-year government bond yield rose to 7.4 per cent. The exchange cut its daily down limit to 7 per cent from 15 per cent and will exclude stocks with high ownership concentration from the Jakarta Composite Index. Foreign investors have net sold US$4.98 billion of Indonesian stocks this year, on track for the biggest annual outflow in at least 16 years.
- Indonesian stocks rebound from six - year low ; Taiwan dollar slips
Indonesian stocks rebounded from a six-year closing low after a nearly 15% loss over two sessions triggered by MSCI's warnings, with shares rising as much as 3.8% intraday as the exchange moved to ease concerns. Regional markets fell, with MSCI's emerging Asia gauge down 1.3% and South Korean equities sliding 4.2% as investors dumped chipmakers over heavy AI spending without clear returns. The Taiwan dollar weakened to 32.616 per dollar, near an 18-month low, as foreign investors pulled record sums from local equities. The rupiah edged up to 17,995 per dollar, snapping a four-day losing streak. An analyst called the rebound a short-term improvement in sentiment rather than a sign that the outlook had fundamentally improved.
Related markets
Latest news
- Internet down: Google Cloud outage leaves websites including Lloyds Bank, Rightmove and DPD not working
A major internet outage appears to have taken down many websites and apps, including Lloyds Bank, HSBC, Screwfix, DPD and internet bank Revolut, according to Down Detector. At least some of the problems seem linked to Google Cloud, where Google confirmed issues with multiple services at its west Europe facilities and said there was no workaround. The article notes it is unclear whether all the disruptions are related. It also points out that cloud infrastructure providers such as Google Cloud, Cloudflare and Amazon Web Services are largely invisible yet support much of the internet, so an outage at one can knock out many seemingly unrelated services.
- BlackRock Files for 'Buffer' Bitcoin ETF as IBIT Draws $665M in a Day
BlackRock has filed with the SEC for the iShares Bitcoin Managed Protection ETF (ticker PBIT), a 'buffer' fund that would limit initial losses to about 10% in exchange for capping gains. Instead of holding Bitcoin directly, it would buy call options on IBIT or similar exposure, sell higher-priced calls to offset costs, use three overlapping monthly tranches, and hold fixed-income investments. The management fee has not been set. On the same day, IBIT was the only one of 12 U.S. spot Bitcoin ETFs to post net inflows, at $665.2 million, while the group's total net inflows were $526.6 million. The funds had shed about $910 million over the previous two weeks as hotter-than-expected inflation data revived bets on another Federal Reserve rate hike.
- The Best Trillion-Dollar Stock to Buy Right Now, According to Wall Street
According to the article, 13 U.S.-listed stocks have a market capitalization of at least $1 trillion, and analysts are most bullish on Micron, with a median target price of $1,575 per share, implying 70% upside from the current $925. Micron's results have surged amid a memory chip shortage driven by AI infrastructure demand: revenue in the September quarter rose 379% to $54 billion, and non-GAAP earnings reached $33.42 per diluted share, up from $3.03 a year earlier. The CEO expects tighter supply-demand conditions in fiscal 2027 and 2028. However, new capacity from Micron, Samsung, SK Hynix and others could lead to oversupply by 2029, and memory prices have historically fallen sharply in such periods. Some investors believe AI demand and longer contracts could weaken the boom-and-bust pattern, while others remain cautious.
- PNJ Shares 'Surge' Ahead of Extraordinary Shareholders' Meeting
PNJ shares hit the daily ceiling of 19,750 dong ahead of an extraordinary shareholders' meeting, with more than 4 million shares in unfilled buy orders at the ceiling price and matched volume above 16 million shares, worth over 315 billion dong. Foreign investors returned as net buyers of over 3.5 million shares after heavy selling. At the meeting, the company will present a restructuring plan following the diamond incident, including cutting this year's revenue target by about 20% to around 39,000 billion dong and setting aside over 7,071 billion dong in provisions, which would swing projected after-tax profit from 3,400 billion dong to a loss of 6,271 billion dong. It also proposes lowering last year's dividend payout from 20% to 10% and issuing up to 550 million shares privately. The stock has lost about 70% of its value since early July.
- Nvidia Stock Hasn’t Been This Cheap in 7 Years. Only 1 Explanation Makes Sense.
Nvidia's trailing P/E ratio is about 27, its lowest since June 2019 and less than half its 10-year average of 61.3, even though the share price has nearly tripled since Aswath Damodaran called the stock a bridge too far in early 2024. The article argues the only mathematical explanation is that earnings are growing faster than the share price, with second quarter fiscal 2027 revenue up 106% to $92.6 billion and earnings up 126%. Damodaran's 2024 valuation model assumed revenue growth of around 32% a year over five years, a pace Nvidia is now far exceeding. Risks noted include doubts about returns on huge AI infrastructure spending, local opposition to data centers, and rising competition from AMD and customers such as Amazon, Google and Microsoft. The author says Damodaran was badly wrong about Nvidia and suggests the trend could continue.
- Coteccons shifts growth focus as construction sector gains major rivals
Coteccons (CTD) views the entry of VinCons (Vingroup) and Tân Minh Nhân (Sun Group) as a force raising industry standards, and its chairman Bolat Duisenov prefers not to compare the company with other contractors. Instead, management focuses on three questions: how to become investors' first choice, how to attract and retain talent, and how to diversify revenue. In fiscal 2026, net revenue rose 38% to VND 34,340 billion and after-tax profit rose 73% to VND 788 billion, while backlog reached a record VND 70,000 billion. The company targets revenue of VND 42,000 billion and profit of VND 1,050 billion for fiscal 2027, although new contracts signed in Q1 of fiscal 2027 totaled VND 14,519 billion, down year on year, as it tightens client and project selection. Bolat said the company can sustain 20-30% growth in the coming years and is shifting its focus from volume to efficiency.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.