‘Crisis of Confidence’ Grips Indonesia Stocks After MSCI Warning
An electronic board displaying stock prices at the Indonesia Stock Exchange in Jakarta, on Jan. 29.
Photographer: Yasuyoshi Chiba/AFP/Getty ImagesJust days ago, Indonesia’s stock market was riding high. The benchmark index hit a record close last week, and a $1 trillion valuation seemed within sight.
Then came the shock. A warning from MSCI Inc. about a possible market downgrade sparked what at one point was the worst two-day rout in nearly three decades, prompting successive trading halts and frantic client calls across dealing desks from Jakarta to Hong Kong.