Indonesia Stock Exchange to add 37 new stocks in high shareholding concentration list
- The exchange has also published a list of stocks with highly concentrated ownership to meet MSCI-requested reforms
JAKARTA: Indonesia Stock Exchange (IDX) CEO Jeffrey Hendrik said on Tuesday that the bourse would add 37 stocks to its list of companies with highly concentrated shareholdings as part of reforms following a warning earlier this year from index provider.
Jakarta’s stock market reforms include more detailed shareholder disclosures and raising the minimum free float for listed firms to 15% to boost liquidity and curb manipulation.
The exchange has also published a list of stocks with highly concentrated ownership to meet MSCI-requested reforms and shed light on potential coordinated trading.
Jeffrey said the 37 stocks were added after the exchange introduced a new price impact ratio criterion to assess listed companies with market capitalisations above 10 trillion rupiah ($553.10 million).
The price impact ratio measures how much a stock’s price changes relative to its velocity, he said, meaning it will monitor rarely traded stocks that experience large price swings.
The additions bring the total number of companies on the exchange’s high shareholding concentration list to 51, the IDX said.
The new price impact ratio criterion was introduced following discussions between the IDX and market stakeholders.
The exchange will announce the new list soon on Tuesday, Jeffrey said.
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