MSCI announced on the 12th that it will remove Indonesian ride-hailing giant GoTo from its Indonesia index at the end of this month. GoTo's market capitalization was once around 29 billion dollars, among the largest in Indonesia, but it has now fallen to 3.2 billion dollars, and the share price has been stuck at 50 rupiah, or less than 0.01 dollars, since mid-May. On the exchange's main trading market, 50 rupiah is the minimum trading price, and MSCI had frozen changes to the company's index composition in late May over concerns that GoTo's low liquidity would make it difficult for index investors to buy and sell the stock at sufficient scale. Index operator FTSE Russell removed GoTo from the mid-cap segment of its Global Equity Index Series in June after the company listed on the Indonesia Stock Exchange's development board, because the development board does not meet FTSE Russell's inclusion criteria for the index series.
MSCI IncMSCI's index change may affect its index business, but the article focuses on GoTo's removal.
London Stock Exchange Group PLCGoTo is removed from MSCI Indonesia index, likely reducing investor demand and liquidity.
