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View all search resultsThe Indonesia Stock Exchange (IDX) officially began excluding stocks with high shareholding concentration (HSC) from its benchmark index calculation on Monday as part of broader efforts to improve market quality.
he Indonesia Stock Exchange (IDX) officially excluded stocks with high shareholding concentration (HSC) from its benchmark index on Monday as part of a broader effort to improve market governance.
The bourse previously unveiled that it had 80 stocks listed under the HSC category, which account for about 18 percent of the index’s total weighting. These stocks are now excluded from the IDX Composite index calculation but remain tradable.
Among the HSC stocks are issuers with large capitalization, including PT Bayan Resources (BYAN) and PT Barito Renewable Energy (BREN), which have market capitalization of Rp 305 trillion (US$19.29 billion) and Rp 240 trillion, respectively.
The IDX Composite index was down 0.35 percent to 5,039.54 points as the market opened on Monday, before rebounding by 0.95 percent during the second trading session.
Read also: IDX overhauls index to limit fallout from MSCI warning
IDX president director Jeffrey Hendrik told reporters in a media gathering on Saturday that the weight of the removed HSC stocks would be redistributed to other index constituents.
This process is similar to the delisting mechanism, he explained, where the weights of delisted stocks are automatically shifted to the remaining stocks within the key index.
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