As the saying goes, 'When it rains, it pours!' A sharp decline in commodities dragged Indonesia's stock market down by 6%.

The Jakarta Composite Index plummeted by 6%, with mining and energy stocks being the biggest drag. As a major exporter of commodities, Indonesia's stock market is highly sensitive to commodity prices, posing a severe challenge to the market confidence recovery efforts recently initiated by regulators.

wallstreetcnFeb 2 15:10

The proportion of floating shares in Asia-Pacific is the lowest! MSCI's review of the Indonesian stock market may lead to an outflow of $2 billion from 'Southeast Asia's largest stock market.'

The low proportion of free-floating shares has become a pain point in the Indonesian market, with more than 200 stocks in the Indonesia benchmark index having a free float ratio below 15%. If MSCI finds that the actual number of tradable shares of Indonesian companies is lower than reported, passive investors will be forced to sell their existing holdings. The outflow of foreign passive funds is expected to reach approximately US$2 billion.

wallstreetcnJan 20 13:31