원문 보기
Let's now talk about Indonesia, where an explosive scandal has emerged in the stock market. And the country's biggest tycoons are under close scrutiny. The investigation uncovered allegations of market manipulation in this Southeast Asian country. Report prepared by Bloomberg. It details how a network of brokers and influential shareholders allegedly rigged stock trading.
They used nominal accounts and swapped shares between accounts to create the illusion of demand. This helped push stock prices to extraordinary levels and increased the fortunes of some of Indonesia's richest people. But now that same market is facing a crisis of confidence. Morgan Stanley Capital International, better known as MSCI, has expressed concerns about market transparency.
And Jakarta now risks losing its emerging market status. Here is the report . The stock price is up 5000%. The brokerage company predicts that it could grow another 10 times. Its founder's fortune exceeds a billion dollars. And investors are trying to get their share of the shares. But what if growth wasn't quite what it seemed?
What if the buying, selling, and even the hype around stocks were artificial? A Bloomberg investigation claims just that. It describes an alleged network of brokers and influential shareholders accused of manufacturing demand. Their goal is to make companies attractive enough to enter a prestigious global stock market index.
And the country at the center of this alleged operation is Indonesia. This story begins with a little-known company called Abadi Lestari Indonesia. She produces Asian delicacies. And its shares rose 5,000%. Then came a research note from brokerage firm Samuel Sekuritas. It said that the rally was just the beginning .
She predicted that Abadi could enter the MSCI indices and suggested that its shares could eventually rise by almost 50,000%. But why was joining MSCI so important? MSCI is a global index provider. Its indices track stock markets around the world, and large international funds use them to decide where to invest.
When a company is included in one of these indexes, funds that track it may be forced to buy its shares. This could bring in millions of dollars. For shareholders, joining MSCI could mean a much wider audience, greater demand and higher valuation. But there is one trick. The company needs a sufficiently large market value.
Its shares must also be widely available and actively traded. And this is where a possible pattern emerges . According to Bloomberg, brokers and influential shareholders allegedly worked together to create the appearance of high demand. One method involved nominal accounts . These were accounts opened in the names of other people.
Some reportedly belonged to domestic workers. The actual shareholders could remain behind the scenes . Brokers allegedly used these accounts to place coordinated buy and sell orders. They traded stocks between accounts linked to the same network. This is known as "soap deals." The transactions gave the impression that investors were actively buying and selling shares.
But much of this activity was allegedly artificially created. The higher number of trades made the shares liquid. Repeat purchases have driven up prices, and the rising valuation has made the company a stronger candidate for inclusion in MSCI. In Abadi's case, Samuel Securitas allegedly accounted for more than half of all stock trades.
Its shares repeatedly reached the exchange's daily price limits. At its peak, its founder's controlling stake was worth about $1.3 billion . This wasn't just about one company. Bloomberg describes similar alleged activity around companies linked to some of Indonesia's wealthiest tycoons. Among them are the tycoons Prajogo Pangestu and Sinarmas Group.
The incentives for brokers were substantial. Brokers could receive transaction commissions of up to 0.6%. This was about double the industry norm. They could also receive a share of the additional market value created. But the strategy depended on one crucial thing. Investors had to believe that the prices were real.
That confidence began to crack in January when MSCI raised concerns about coordinated trading and distorted stock prices. A few months later, in October, the company warned that Indonesia could face a two-notch downgrade. Essentially, this is a rare drop from emerging market status to a much riskier category.
The final decision should be made by the end of June next year. The consequences were already serious. Adaro shares fell by 70 %. Several Indonesian companies were excluded from MSCI indices, and the broader stock market suffered a sharp sell-off . It lost approximately $65 billion in value. Indonesian regulators have also taken action.
They identified firms and individuals associated with some of these companies. But the charges in the investigation were appealed. Samuel Securitas denied wrongdoing. The founder of Adaro said that the company is obliged to comply with the law. Other firms mentioned in the investigation also disputed these claims.
This episode presented Indonesia with a much bigger question. If trading volumes and stock prices can be artificially inflated, how can foreign investors know how much a company is actually worth? The company can be squeezed into the index. Its valuation can be made impressive, but investor trust is much harder to build.
If you enjoyed today's show, please hit the "Like" button and subscribe so you never miss an episode. And if you liked any story, leave us a comment. We would like to know what caught your attention. Tell us what you would like us to cover next. Contact us and we will always be in touch. 50 states, two parties, one election.
The loudest name at the center of the battle is Donald Trump. This November, America goes to the polls. Whoever wins controls the US Congress . Trump 2.0 is facing a defining moment. Will the Republicans be able to hold on to their power? Will the Democrats be able to come back? The results will spread far beyond the United States .
We will be following the numbers and narratives. Watch our special coverage of the midterm elections on First Post.
Comments 0