BEI Ensures Safe Market Capitalization After Removing 81 HSC Shares from IHSG
The Indonesian Stock Exchange ensures that the issuance of eighty-one shares in the High Shareholding Concentration category does not reduce the total market capitalization, even though this policy has a direct impact on the calculation of the Composite Stock Price Index starting in early November.
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The Indonesian Stock Exchange emphasized that the deletion of dozens of shares purely affected the reference index calculation mechanism without eliminating the market capitalization value of the companies concerned in the national capital market as a whole.
The exchange's Development Director explained that this concentrated group of shares has a weight of around eighteen percent of the reference index, while its total market capitalization reaches around thirty percent of the entire exchange.
This strategic policy is scheduled to take effect on the second of November this year, and management ensures that this step does not trigger extreme movements in the form of drastic declines or spikes in the index.
The Exchange's Managing Director added that this new rule was a continuation of the previous policy which had previously excluded shares in similar categories from various other active indices such as LQ45 and IDX30.