Indonesian Stocks Slump 2.5% as Trade Resumes After Idul Fitri
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Indonesian shares slumped 2.5 percent on Wednesday (20/06), their sharpest intraday fall in nearly two months, after trade resumed following a long holiday for Idul Fitri celebrations.
Global equity markets saw a selloff during the Idul Fitri holiday and Indonesia is expected to play catch-up, driven by stocks with high foreign ownership such as Bank Central Asia and Bank Mandiri, according to a Trimegah Securities note. Indonesian financial markets were closed from June 11 to 19.
Financials were the biggest losers with Bank Central Asia declining 3.8 percent and Bank Mandiri shedding 6.5 percent.
An index of the country’s 45 most liquid stocks slid 3.6 percent to its lowest in nearly one month.
Among other Southeast Asian stock markets, the Philippines was down for a fifth straight session while Thailand rose after five consecutive sessions of declines ahead of central bank policy meetings.
The Bank of Thailand is expected is expected to leave its policy interest rate near a record low, while a slim majority of economist expect the Bangko Sentral ng Pilipinas to raise rates.
Energy and financial stocks were among the biggest boost in Thailand with PTT climbing 0.5 percent and Bangkok Dusit Medical Services rising 3.3 percent.
Malaysian shares were higher after seven straight sessions of falls with Axiata Group gaining 1 percent and Genting adding 1.8 percent. The consumer price index rose 1.8 percent last month from a year earlier, meeting market expectations, on stronger fuel and transport prices and rising demand for food, government data showed.
Questions & Answers
Q.Which specific stock types contributed most to the Indonesian market's decline?
Which specific stock types contributed most to the Indonesian market's decline?
Financials were the biggest losers in Indonesia, with Bank Central Asia and Bank Mandiri experiencing significant declines. Stocks with high foreign ownership were also expected to drive the catch-up slump.
Q.How did other Southeast Asian markets perform during Indonesia's trading resumption?
How did other Southeast Asian markets perform during Indonesia's trading resumption?
The Philippines market was down for a fifth straight session, while Thailand rose after five consecutive sessions of declines. Malaysian shares were higher after seven straight sessions of falls.
Q.What is the expected monetary policy direction for the central banks in Thailand and the Philippines?
What is the expected monetary policy direction for the central banks in Thailand and the Philippines?
The Bank of Thailand is expected to keep its policy interest rate near a record low. A slim majority of economists expect the Bangko Sentral ng Pilipinas to raise rates.
Q.What factors contributed to the rise in Malaysia's consumer price index last month?
What factors contributed to the rise in Malaysia's consumer price index last month?
The consumer price index rose due to stronger fuel and transport prices, combined with rising demand for food, according to government data.
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