✉news BusinessMarkets first seen 17 h ago, last 11 h ago, peak #1
'Panic' selling hits Indonesian markets on MSCI expulsion threat
Indonesian stocks and the rupiah came under heavy selling pressure after MSCI warned it could expel the country from its emerging markets index. Reuters reported traders described the selloff as panicked, as foreign investors rushed to cut exposure. Inclusion in MSCI indices is crucial for attracting passive foreign capital, so a potential expulsion raises the prospect of sustained outflows and has unsettled confidence in Indonesian assets.
Why now: Investors are reacting to the risk of Indonesia being dropped from MSCI's benchmark emerging markets index, which would trigger large capital outflows.
Evidence
- 'Panic' selling hits Indonesian markets on MSCI expulsion threat · Reuters
- 'Panic' selling hits Indonesian markets on MSCI expulsion threat · Yahoo Finance
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