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What is the story about?
Iman Rachman, CEO of the Jakarta Stock Exchange quit on Friday, January 30, taking responsibility for the "recent market conditions."
Jakarta Composite index fell over 7% on Wednesday and trading was halted again on Thursday, after index provider MSCI warned of a potential downgrade to the country's status to "frontier market" from the current "Emerging Market" status.
The two-day sell-off in Indonesia resulted in the market wiping out $84 billion in value. The stock exchange did not elaborate further on Rachman's exit, apart from him taking responsibility for the current situation.
Reuters quoted Rachman from a press conference, in which he stated that he is hopeful of this being the best decision for the capital markets. "May my resignation lead to improvement in our capital markets," he said.
MSCI has raised concerns in Indonesia with regards to low free float in most of the large companies listed on the exchanges, with shareholders lamenting that they are being controlled only by a handful of individuals.
CNBC-TV18 had reported on Thursday that subject to multiple factors falling into place for the MSCI, Indian equities could receive passive inflows of over $10 billion over the next two years.
You can read more on that here.
Jakarta Composite index fell over 7% on Wednesday and trading was halted again on Thursday, after index provider MSCI warned of a potential downgrade to the country's status to "frontier market" from the current "Emerging Market" status.
The two-day sell-off in Indonesia resulted in the market wiping out $84 billion in value. The stock exchange did not elaborate further on Rachman's exit, apart from him taking responsibility for the current situation.
Reuters quoted Rachman from a press conference, in which he stated that he is hopeful of this being the best decision for the capital markets. "May my resignation lead to improvement in our capital markets," he said.
MSCI has raised concerns in Indonesia with regards to low free float in most of the large companies listed on the exchanges, with shareholders lamenting that they are being controlled only by a handful of individuals.
CNBC-TV18 had reported on Thursday that subject to multiple factors falling into place for the MSCI, Indian equities could receive passive inflows of over $10 billion over the next two years.
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