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Indonesia's equity market has now been flagged by two of the world's major index compilers for potential reclassification from emerging to frontier status.
S&P Dow Jones Indices has placed the southeast Asian market on a watchlist, following MSCI's earlier move to do the same. Index providers rarely converge on the same concern by coincidence.
Two flags, not one MSCI moved first. S&P Dow Jones has now matched the warning.
The practical weight of two simultaneous watchlist inclusions is greater than the sum of its parts: funds tracking one index can rationalize inaction, but funds tracking both face a coordinated signal pointing in the same direction.
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