Indonesian Stocks Extend Slide to 4-Month Low
Indonesia’s IDX Composite dipped 54 points, or 0.9%, to 5,884 in early Tuesday trade, marking the second straight session of losses and notching a four-month low. Sentiment weakened further as U.S. stock futures retreated after a Wall Street tech selloff overnight spilled into Asian markets ahead of key inflation data. Caution also prevailed ahead of CPI, PPI, and trade reports in top trading partner China later this week. Locally, concerns mounted over a pending Financial Services Authority probe into alleged price manipulation in energy stocks. Uncertainty surrounding MSCI’s review of Indonesian equities and persistent rupiah weakness added to the pressure. Losses were broad across cyclical stocks, basic materials, infrastructure, and energy, although selective buying in fundamentally strong companies helped temper the decline. Notable laggards included Indah Kiat Pulp & Paper (-5.5%), Japfa Comfeed (-5.0%), Perusahaan Gas Negara (-3.5%), and Bank Rakyat Indonesia (-2.3%).
9%, to 5,884 in early Tuesday trade, marking the second straight session of losses and notching a four-month low. S. stock futures retreated after a Wall Street tech selloff overnight spilled into Asian markets ahead of key inflation data. Caution also prevailed ahead of CPI, PPI, and trade reports in top trading partner China later this week.
Locally, concerns mounted over a pending Financial Services Authority probe into alleged price manipulation in energy stocks. Uncertainty surrounding MSCI’s review of Indonesian equities and persistent rupiah weakness added to the pressure. Losses were broad across cyclical stocks, basic materials, infrastructure, and energy, although selective buying in fundamentally strong companies helped temper the decline. 3%).