EMERGING MARKETS — Turkey, Indonesia hit by MSCI downgrade warnings

Turkish stocks slide after MSCI warns of downgrade Indonesia logs worst day since 1998 as MSCI proposes downgrade UBS, JPMorgan warn of sharp outflows from both markets Focus on Romania politics, upcoming South Africa budget By Johann M Cherian and Sudeshna Ghoshal Oct 16 (Reuters) — Indonesian and Turkish stocks sank on Friday after index provider MSCI warned of downgrades from emerging market status, citing a lack of transparency over trading practices. Turkish stocks slid 3.3% to a January low and were set for their fifth straight week of losses after MSCI cited concerns and froze certain changes to its equity indexes tracking the country. MSCI also said it needed more time to assess market reforms and warned of a downgrade to "frontier status" if sufficient progress was not made by mid-2027. Turkey's banking index fell 2% and the lira was flat at 49.52 a dollar. "The recent MSCI actions will continue to affect market sentiment and things will only stabilise when we move beyond the issues that MSCI has identified," said Zin Bekkali, CEO at frontier-focused asset manager Silk Invest. In a worst-case scenario, he predicted Turkish markets could fall another 20% to 30% over the nex