Lates News

Allspring Global Investments points out that Indonesian bank and telecom stocks may face further declines. Although these companies are among the most fundamentally sound in Indonesia, they are finding it difficult to remain insulated from the broad selloff amid the risk that MSCI may downgrade Indonesia's market classification. Banks and telecoms together account for roughly 80% of the weight in the MSCI Indonesia Index. Since January, when MSCI first warned of a possible downgrade of this Southeast Asian market's classification, the index has fallen more than 40% cumulatively. During this period, shares of PT Telkom Indonesia Persero have nearly halved, while major financial institutions including PT Bank Central Asia and PT Bank Rakyat Indonesia Persero have each seen share price declines of at least 23%.