Below is a list with tagged columns and company profiles.
Latest Reports Jakarta Composite Index
Riska Afriani, analyst at OSO Sekuritas, believes Indonesia's big cap stocks have limited room to advance in the remainder of 2017 because they have already shown significant growth so far in 2017 (in line with the rising benchmark Jakarta Composite Index that touched a record high in July 2017). However, some big caps may still show some more marked movement than others.
The high price-to-earnings ratio (PER) of Indonesia's benchmark Jakarta Composite Index has caused foreign investors to record net selling since 4 July 2017. The peak occurred on Tuesday (25/07) when foreign investors recorded net selling of IDR 1.65 trillion (approx. USD $124 million). So far this year, foreign net buying into Indonesian stocks now stands at IDR 6.56 trillion (approx. USD $493 million).
Indonesia's benchmark Jakarta Composite Index is expected to be under pressure on Monday (24/07) as markets await the release of corporate earnings reports (for example Amazon.com Inc, GlaxoSmithKline Plc and Credit Suisse Group AG will release their earnings this week) as well as the Federal Reserve meeting on Wednesday (26/07). The Fed is expected to keep its monetary policy unchanged but investors will be looking for clues about the timing of the unwinding of the balance sheet.
Earlier this morning the Indonesia Stock Exchange (IDX) released a statement that it could not deliver any data on Monday morning (10/07) due to technical issues. As usual, trading opens at 09:00 am local Jakarta time. However, the IDX website showed no activity of the Jakarta Composite Index. This was later attributed to a data-feed error.
Asian shares are under pressure on Friday morning (07/07) due to declines on Wall Street overnight. These declines were caused by the ADP jobs report, released on Thursday (06/07), that missed estimates as well as by rising tensions surrounding North Korea's ballistic missile tests and a tech sell-off. Meanwhile, global sovereign debt yields rose on expectation that the European Central Bank (ECB) is moving closer toward unwinding its massive monetary stimulus.
On Thursday (06/07) Indonesia's benchmark Jakarta Composite Index advanced 0.42 percent to 5,849.58 points amid mixed Asian markets. Indonesian stocks are now again approaching the record high level that was set earlier this week. Local Indonesian securities companies are confident to see the benchmark index of Indonesia rising further in the remainder of the year, passing beyond the 6,000 level. Which Indonesian stocks do these companies recommend?
After the week-long holiday Indonesian stocks made an impressive return on Monday (03/07). Indonesia's benchmark Jakarta Composite Index surged 1.38 percent to 5,910.24 points, another record high position, led by financial and telecommunication stocks. Investors were in the mood to buy Indonesian shares after the long holiday. Moreover, positive Chinese economic data and Indonesia's easing core inflation provided more reasons for investor appetite.
Most stocks in Asia were in the red zone on Wednesday morning (21/06) as oil entered bear territory after prices continued to tumble (with Brent at seven-month lows) due to rising oil output in Libya and Nigeria. Meanwhile, Chinese shares seem to enjoy limited support only from the decision of US index provider MSCI to add China's mainland stocks to one of its key benchmarks.
A total of 25 Indonesian companies have been selected to be in Nikkei's Asia300 index. This index now contains 316 companies that are listed in one of 11 Asian nations. The companies are selected based on market capitalization.
Indonesia's economic acceleration, the nation's recently obtained investment grade status from Standard & Poor's (S&P) and the (near) record high position of the benchmark Jakarta Composite Index makes it more attractive for Indonesian companies to conduct an initial public offering (IPO) on the Indonesia Stock Exchange. Moreover, the Federal Reserve is committed not to cause too much volatility in markets by acting cautiously and communicating its (possible future) moves clearly.
Latest Columns Jakarta Composite Index
There were two options with regard to today's trading day (Monday 17 March 2014). First, the Jakarta Composite Index (Indonesia's benchmark stock index also known as IHSG) could rise further after its impressive 3.23 percent jump last Friday (14/03), and secondly, the bullish market could become vulnerable to profit taking as the 'Jokowi effect' tones down and no other factors could trigger positive market sentiments. It turned out to be the second option. Not even sharp rupiah appreciation could push the index in the green zone.
A shock wave went through Indonesia's financial markets on Friday (14/03) after 15:00 local Jakarta time, when it became known that Joko Widodo (popularly known as Jokowi) is joining the presidential race for the July 2014 election. Moreover, he can count on full support from the Indonesian Democratic Party of Struggle (PDI-P), one of Indonesia's largest political parties, led by chairwoman Megawati Soekarnoputri. Few people doubt that Jokowi - current Governor of Jakarta - will be elected as the next president of Indonesia.
Despite technical indicators pointing toward a potential rise of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG), foreign net selling on Wednesday's trading day (12/03) caused the 0.42 percent decline to 4,684.38 points. Only two sectors recorded a positive performance today: consumer goods and property. Companies that did particularly well were Danayasa Arthatama, Metropolitan Land, Agung Podomoro Land, Siantar Top, and Kedawung Setia Industrial.
Although we advise investors to remain careful as any negative sentiment will be used as a valid reason for profit taking, Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) was up from the start of the trading day on Tuesday (11/03). The start of dividend payouts helped to offset concerns about possible interest rate hikes (in emerging markets) as well as the impact of weak indices on Wall Street and Europe on Monday (10/03). Asian stock indices, however, were positive on Tuesday, thus providing support for the IHSG.
At the start of the week, Indonesia's benchmark stock index (the Jakarta Composite Index of IHSG) has the tendency to decline as market participants are eager to engage in profit taking. The release of China’s weak export data (resulting in a trade deficit) at the end of last week in combination with the widening current account deficit of Japan (and its slowing GDP growth) provided enough reasons for investors to opt for profit taking. Moreover, Asian stock markets were in the red and were thus unable to support the IHSG.
On the last day of the week (07/03), Indonesia's benchmark stock index (Jakarta Composite Index or IHSG) fell 0.04 percent to 4,685.89 points as market participants engaged in profit taking (cashing in on the recent strong performance of the IHSG) amid resurging concerns about the situation in Ukraine. On the other hand, losses were limited as investors are upbeat about the improved outlook for the global economy. US data were good as the number of people who filed for unemployment benefits fell to the lowest level in three months.
Rising indices on Wall Street on Tuesday (04/03) impacted positively on Asian indices the following day, including Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG). As the political tensions in Ukraine have somewhat eased since Russian President Vladimir Putin said that Russia was not seeking to escalate the conflict, investors were again eager to invest in emerging market stocks; foreign investors were net buyers. Today's performance of the IHSG left a gap at 4,602-4,621 points.
Yesterday (26/02) strengthening Asian stock indices were unable to push the benchmark index of Indonesia (Jakarta Composite Index/IHSG) into the green zone. Today (Thursday 27 February), we witnessed the contrary: the IHSG climbed 0.80 percent to 4,568.94 points, while Asian indices were mixed. Indices in China, the Sensex and the Nikkei fell, while others rose. Those that rose responded positively toward the release of higher sales of new US single-family homes. However, the conflict in the Ukraine limited their growth.
When there are few positive sentiments that can push Indonesia's benchmark stock index (Jakarta Composite Index, also known as IHSG) into higher territory there is always the risk of downreversal due to profit taking. Particularly as the IHSG has shown a steady rising trend in recent weeks. The IHSG's decline on Monday (24/02) was influenced by falling Asian indices after a sell off of property and construction stocks emerged. The continued appreciation of the Indonesian rupiah exchange rate was also unable to provide enough support for the index.
Foreign confidence in Indonesia's capital markets seems to be growing further after foreign investors continued to expand their stock portfolios last week. In February 2014 (up to Friday 21/02), foreigners purchased IDR 36.0 trillion (USD $3.1 billion) worth of stocks and sold IDR 29.3 trillion (USD $2.5 billion), resulting in net foreign buying of 6.7 trillion (USD $570.2 million) in the first three weeks of February 2014. When foreign net buying of January 2014 is added, total net foreign buying reached IDR 9.0 trillion (USD $766.0 million).
