www.businesstimes.com.sg ·
indonesia equities plunge msci removal triggers broad sell tycoon linked stocks hit hardest
Topic context
This topic has been covered 350098 times in the last 30 days across our monitored publishers.
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AI insight
AI-generatedMSCI index removal triggers foreign portfolio outflows from Indonesian equities, pressuring the rupiah and local financial conditions. The channel is regulatory (index rule change) leading to demand_spike for USD and sell-off in Indonesian stocks. Impact is country-specific (Indonesia) with spillover to EM sentiment. Direct losers: Indonesian equity holders, rupiah; winners: none specified.
Signals our AI researcher identified
Extracted by our AI model from this article and related public sources — not direct quotes from the publisher.
- MSCI removed six Indonesian companies from its Global Standard Index on May 13, 2025.
- Jakarta Composite Index fell up to 1.7% to lowest since late April 2025.
- Rupiah weakened to an all-time low of 17,535 per US dollar.
- Analysts estimate potential foreign outflows of $1 billion to $1.7 billion.
- Indonesia equity market year-to-date losses of 21.8%, worst in Southeast Asia.
MSCI deletion triggers foreign outflows, pressuring Indonesian equities and rupiah; EM sentiment negative in 48h with a 2-4% decline.
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Sector impact at a glance
- EM_BANKINGmid
- EM_BANKINGshort
- EM_MARKETSmid
- EM_MARKETSshort