Amman Mineral shares hit record high on MSCI index inclusion news

© Reuters.

Shares of PT Amman Mineral Internasional, a key player in Southeast Asia’s largest economy, surged to a record high with a 2.5% increase today, following the announcement of its inclusion in MSCI Inc.’s global standard indexes starting November 30. The Indonesian mining company has seen its value skyrocket by over 320% since its initial public offering (IPO) in July.

The inclusion in the MSCI index is expected to spur passive investment funds to buy approximately $234 million worth of Amman Mineral’s shares, as estimated by analysts from Periscope Analytics. This anticipated influx of capital is part of the broader growth in Jakarta’s stock market, which has become a hub for mid-to-large size IPOs, particularly in the green energy and electric vehicle supply chain sectors.

Since the beginning of the year, new share sales in Indonesia have reached $3.6 billion, marking a significant 62% increase from the previous year. Amman Mineral’s IPO was a standout event, raising $715 million and becoming the largest offering in Southeast Asia this year. The strong performance has not only attracted international and domestic funds but also set the stage for potential inclusion in other major indexes.

Investors are now eyeing the end of this week when Amman Mineral may also be added to the Russell indexes. The decision will be announced after the US market closes, with implementation expected by mid-December. This development comes on the heels of a dynamic year for Indonesian shares, with 22 already incorporated into the as of October.

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