MSCI has removed GoTo Group from its indexes due to liquidity concerns following a significant decline in the company's share price. The decision was part of MSCI's quarterly review and was effective as of the close of August 31. The index compiler had previously warned in May that GoTo would be deleted if it did not meet relevant liquidity requirements, according to a statement from MSCI.
Key Details
In addition to GoTo, MSCI also cut Charoen Pokphand Indonesia from its indexes. GoTo, once valued at over $32 billion, has struggled with heavy losses amid fierce competition from rivals such as Grab. Despite posting its second consecutive quarterly profit in July, investor interest has waned, with shares remaining at the price floor of 50 rupiah (approximately $0.0028) for about three months. GoTo acknowledged the impact of MSCI's decision, stating, "We recognize this will be unwelcome news for many of our shareholders," while emphasizing that the move was technical and not reflective of its business performance.
Background
Analysts have expressed skepticism about GoTo's recovery prospects. Wilbert Arifin from Mirae Asset Sekuritas Indonesia noted, "There’s no route back for GoTo unless they have a reverse stock split." This situation adds complexity to the broader challenges facing Indonesia's market, which has seen a reduction in the number of constituents in the MSCI Indonesia Index from 18 to 9 since the start of 2026.
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The removal of GoTo from the MSCI indexes could lead to reduced trading activity and further pressure on its share price, impacting investor sentiment in the Indonesian market. The situation may also affect other tech stocks facing similar liquidity issues. Investors will watch for any announcements regarding potential restructuring efforts or changes in share capital that could influence GoTo's future.
Watch for GoTo's upcoming earnings report, which may provide insights into its financial recovery strategies and market positioning.
Based on reporting by: businesstimes.com.sg