Indonesian shares fell more than 5 per cent in early trading on Monday to a six-year low, after the index provider MSCI said it was considering removing the country from its emerging markets category, CNA reports.
The Jakarta benchmark had already dropped 11.6 per cent on Friday. MSCI is weighing a move to "standalone" status, a step beyond the downgrade to frontier market it had threatened in January over opaque share ownership and trading practices. Goldman Sachs estimates a full removal could prompt about US$5.6 billion of passive fund outflows.
The stock exchange has narrowed the daily limit on how far a share can fall, from 15 to 7 per cent, and the financial regulator on Friday announced fines totalling 2.1 trillion rupiah over alleged manipulation in three companies' shares.
Source: CNA
