Despite Mixed Asian Stock Markets, Indonesia's Index Posts New Record High

Purchases by foreign investors also supported Indonesia's main indicator, despite domestic investors mostly selling their Indonesian assets. Trade volume declined, while total value of transactions increased

The IDR rupiah continued its fall in line with the weakening Euro after president of the European Central Bank (ECB), Mario Draghi, still saw opportunities to cut the interest rate. Furthermore, in Italy there is still a political stalemate, as well as the still unclear emergency liquidity provision from the ECB in the form of Outright Monetary Transactions (OMT). Lastly, we saw the resignation of the Cyprus finance minister in connection to the crisis that hit the country. Although there has already been reached an agreement between Cyprus and Troika (a coalition of the EU, the ECB and the IMF) for the extended bailout, the international community does not really see its significance towards the economy of Cyprus. Moreover, plans to limit money withdrawals from banks and the prohibition to transfer money to foreign banks make market participants worried about the condition of Cyprus. Apart from turmoil in Europe, the rupiah was also hurt by Australia's negative growing monthly New Home Sales, despite the country's lower trade deficit.

Asian markets were mixed, but with a decreasing trend. Negative market sentiments came from Malaysia (uncertainty due to the coming elections) and Korea (where political tension is rising).

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