Indonesian stocks may suffer outflows, according to Citigroup Inc., as MSCI Inc. flags potential changes to its index weightings for companies with certain shareholding structures.
The benchmark Jakarta Composite Index fell 1.9% on Monday and fluctuated on Tuesday, after the index provider sought feedback on how to estimate the free float of Indonesian securities, or the portion of shares available for trading in the open market. The change might reduce some companies’ weightings in key MSCI indexes.