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اقتصاد سكاي نيوز عربية
Indonesian Markets See Rising Sales After MSCI Warning
Indonesian markets are facing a sharp decline following MSCI's warning of a potential downgrade, moving the country from "Emerging Markets" to "Standalone Markets." This has triggered a broad sell-off across stocks, bonds, and the currency, damaging confidence in financial and governmental institutions. The Jakarta Composite Index fell by as much as 5.4% during trading, while the yields on ten-year bonds rose, and the rupiah weakened further against the dollar. Since the beginning of the year, foreign investors have withdrawn approximately $5.1 billion, marking the largest capital outflow in Indonesian history. MSCI is now considering a final reclassification of the country, while financial institutions warn of potential investments worth up to $5.6 billion being pulled out if Indonesian stocks are removed from global indices. This risk stems from weak oversight and implementation measures, with expectations that local borrowing costs will rise if market pressures persist.
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