The Indonesia Stock Exchange (IDX) removed its 50 rupiah (0.3 cents) minimum share price on Monday, resulting in a significant market reaction [1]. On the first trading day without the price floor, the IDX composite index declined by 94.03 points, or 1.51% [1]. Over 40 stocks, including technology company GoTo Gojek Tokopedia, traded at or below 50 rupiah, indicating broad downward pressure among lower-priced equities [1].
The removal of the price floor led to some stocks, notably GoTo Gojek Tokopedia, experiencing sharp declines [1]. While the change has improved market liquidity, it has also exposed major companies to increased downward pressure on their share prices [1].
The overall market reaction was negative, as evidenced by the drop in the composite index and the number of stocks trading at or below the former minimum price [1]. No forward-looking statements or analyst opinions were provided in the article [1].
CONCLUSION
The removal of the 50 rupiah price floor on the Indonesia Stock Exchange triggered a notable decline in the market, with GoTo Gojek Tokopedia and over 40 other stocks trading at or below the previous minimum. While liquidity improved, the immediate impact was negative for major companies and the broader index.