Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Foreigners Dump $1.2 Billion of Indonesian Stocks After Weak Growth, Protests

Stock Markets Sep 29, 2019 11:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

(Bloomberg) -- Foreign investors pared their holdings of Indonesian stocks as escalating political demonstrations added to worries of a slowdown in Southeast Asia’s largest economy.

Net foreign selling in the equity market reached $1.2 billion in the third quarter, set for the biggest outflow since the second quarter of 2018, according to data compiled by Bloomberg. The selloff trims the year-to-date net inflow to $3.7 billion.

Investors have been worried that earnings will slump as growth in gross domestic product slows to 5.05%, the weakest in two years. To make matters worse, thousands of demonstrators took to the streets of Jakarta last week as part of countrywide protests aimed at forcing the government to reconsider legislation rights that groups say will curtail civil liberties.

The trouble signals a tough path ahead for President Joko Widodo, popularly known as Jokowi, before he starts his second term next month. He managed to lead with a wider margin during the re-election in April and is expected to name his new cabinet after the Oct. 20 inauguration.

“The economic slowdown has been caused by a wait-and-see attitude among investors in the lead up to the cabinet formation,” said Harry Su, head of equity capital markets at Samuel International. “Continued demonstrations and skirmishes on the ground are adding to worries and contributed to the biggest net foreign outflow since June 2018.”

Su said he would advise clients to maintain their holdings of defensive stocks and wait for Widodo to decide on his new cabinet.

Widodo also has to deal with new police and military clashes with separatist forces in the province of Papua in which at least 30 people were killed.

“The current situation is undoubtedly not conducive to investment,” Su said. “I find the degree of flash point emergence to be highly unexpected.”

Foreigners Dump $1.2 Billion of Indonesian Stocks After Weak Growth, Protests
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email