Indonesian Stocks Sink 3% in Afternoon Trading
Indonesia’s IDX Composite tumbled 165 points, or 3.1%, to 5,204 on Tuesday afternoon, erasing early gains and extending the prior decline. Persistent rupiah weakness, concerns over foreign fund outflows, and lingering uncertainty surrounding Indonesia’s MSCI status dampened sentiment. Meanwhile, fiscal worries mounted as higher oil prices coincided with government proposals to offer free education from primary school through university, adding to concerns over rising budget spending commitments. Investors also adopted a cautious stance ahead of the Fed’s policy meeting and major U.S. earnings. Investors also monitored developments in the Middle East amid renewed diplomatic efforts. Selling pressure was broad-based across sectors, with energy, infrastructure, and consumer cyclicals leading the decline. Indonesia’s four largest banks fell between 2.4% and nearly 5%. Other biggest laggards included Darma Henwa (-6.9%), Indika Energy (-5.9%), and Telkom Indonesia (-5.3%).
Indonesia’s IDX Composite tumbled 165 points, or 3.1%, to 5,204 on Tuesday afternoon, erasing early gains and extending the prior decline. Persistent rupiah weakness, concerns over foreign fund outflows, and lingering uncertainty surrounding Indonesia’s MSCI status dampened sentiment. Meanwhile, fiscal worries mounted as higher oil prices coincided with government proposals to offer free education from primary school through university, adding to concerns over rising budget spending commitments. Investors also adopted a cautious stance ahead of the Fed’s policy meeting and major U.S.
earnings. Investors also monitored developments in the Middle East amid renewed diplomatic efforts. Selling pressure was broad-based across sectors, with energy, infrastructure, and consumer cyclicals leading the decline. Indonesia’s four largest banks fell between 2.4% and nearly 5%.
Other biggest laggards included Darma Henwa (-6.9%), Indika Energy (-5.9%), and Telkom Indonesia (-5.3%).