STOCKS | Indonesia to Remove 300 More Highly Concentrated Stocks From Benchmark Indexes

The Indonesia Stock Exchange identified 300 additional stocks with highly concentrated ownership, bringing the number identified to more than four times the original count. According to Sina Finance, the exchange said the 300 stocks, along with 83 already slated for removal, will be excluded from the relevant indexes; together, the newly added stocks account for about 6% of the benchmark index’s total market capitalization, and no list was disclosed. Indonesia is accelerating regulatory measures in response to a warning from MSCI Inc. last month. MSCI said concerns about alleged coordinated trading and opaque ownership could put Indonesia at risk of a two-step downgrade from emerging-market status. The exchange and regulators have tightened rules in recent months, following the first related complaints in January, but MSCI said the measures remain insufficient and called for further enforcement action.