None
EN
Indonesian authorities attempt to soothe worries after $80 billion market rout
['Stefanno Sulaiman', 'Ankur Banerjee', 'Thu', 'January', 'At Am Gmt', 'Min Read']
Yahoo News - Latest News & Headlines
The rout, which erased about $80 billion in market value, came after index provider MSCI flagged concerns about ownership and trading transparency in Indonesian stocks, the latest setback for a market struggling to maintain investor confidence.
The benchmark Jakarta Composite Index closed down just 1% after an earlier slide of 8% - which triggered a trading halt - following Wednesday's 7.4% tumble.
The rupiah was 0.27% softer at 16,745 against the dollar, just below last week's record low of 16,985.
"The two-day sell-off looks less like a reaction to fundamentals and more like a repricing of market access risk," said Josua Pardede, chief economist at PermataBank.
MSCI said in a statement on Thursday evening in Indonesia that it would "continue to monitor developments in the Indonesian market and engage with market participants and authorities, including the Otoritas Jasa Keuangan and the Indonesia Stock Exchange, and will communicate further actions as warranted."