Indonesian stocks are expected to feel heavy downward pressure on Monday (29/06) due to stalled talks between debt-ridden Greece and its international creditors. Indonesia’s benchmark stock index (Jakarta Composite Index) still needs to open but other Asian markets immediately plunged after opening. Japan’s Nikkei 225 was down 2.28 percent as the yen appreciates (investors are chasing safe haven assets), while South Korea’s KOSPI fell 1.5 percent. Meanwhile, the euro is depreciating heavily in Asian trading.

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Most stock indices across the world continued to fall on Friday (26/06) on heightened concern that debt-ridden Greece will fail to reach an agreement with its international creditors. The deal is necessary for Greece to obtain bailout funds in order to avoid a default on its debt to the International Monetary Fund (IMF) due on 30 June 2015. A default could mean a Greek exit (Grexit) from the Eurozone and jeopardizes stability of the whole financial system of the region. Talks between both sides will continue into the weekend.

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As Greece and its international creditors have failed to reach an agreement (yet) regarding the disbursement of crucial bailout funds for the debt payment of debt-ridden Greece to the International Monetary Fund (IMF) later this month, most Asian stocks fell on Thursday (25/06) in cautious trading. Indonesia’s benchmark stock index (Jakarta Composite Index) fell 0.68 percent to 4,920.04 points, while the rupiah depreciated 0.20 percent to IDR 13,328 per US dollar according to the Bloomberg Dollar Index.

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On Tuesday (23/06) Asian stock indices extended gains on optimism that debt-ridden Greece will not default and stays within the Eurozone. Although Eurozone leaders reminded that there is still work to be done before an agreement can be reached between Greece and its creditors, markets are confident that the deal is only a matter of time. However, similar to yesterday, Indonesia’s benchmark stock index did not follow this global positivity and instead declined 0.44 percent to 4,937.65 points.

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Contrary to the performance of most other Asian stock indices, Indonesia’s benchmark Jakarta Composite Index fell 0.52 percent to 4,959.25 points on Monday (22/06). Other Asian markets were supported by renewed hopes of averting a Greek exit (Grexit) from the Eurozone after the debt-ridden country gave new proposals to its creditors in the Eurozone over the past weekend. According to the Greek government these proposals are mutually beneficial. Ahead of the ‘emergency’ meeting today, the euro and European stocks tend to rise heavily.

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Shares of Indonesian mining company Merdeka Copper Gold rose about 15 percent on its trading debut on Friday (19/06). The company, a subsidiary of Saratoga Capital, was the sixth company to conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2015. Head of Finance and Corporate Secretary Ellie Turjandi said that Merdeka’s shares had been oversubscribed nearly 40 times during the public offering (11-15 June 2015), reflecting investors’ confidence even though the company has not yet begun production.

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Indonesian stocks rebounded on Tuesday (16/06). The country’s benchmark Jakarta Composite Index rose 0.72 percent to 4,872.60 points supported by foreign net buying and rebounding from yesterday’s 13-month low position. Middle and longer term investors now have great opportunity to find stocks at bargain prices (particularly those stocks that are not too exposed to the weakening rupiah). However, trading volume was low at about 60 percent of the past 30-day average thus indicating that market participants remain wary.

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In line with the performance of most other stock indices in Asia today (15/06), Indonesia’s benchmark Jakarta Composite Index (IHSG) fell over one percent in the first trading session. Primary reasons for this weak performance are concerns about stalled negotiations between Greece and its Eurozone creditors. Negotiations broke down without a deal on the bailout aid causing raising worries about a Greek default on its debt (a payment is due at the end of this month) as well as a Greek exit from the Eurozone (“Grexit”).

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Immediately after the opening of trade on Wednesday (10/06), Indonesian stocks rebounded sharply. Yesterday, Indonesia’s benchmark stock index (Jakarta Composite Index) had fallen 2.30 percent due to worries about looming higher US interest rates later this year, the Greek debt crisis in the Eurozone, heavy rupiah depreciation, and weak domestic macroeconomic data (such as Indonesia’s high inflation, disappointing Q1-2015 economic growth, the still wide current account deficit, and the central bank’s falling forex reserves).

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Indonesian stocks declined more than expected during the first trading session on Tuesday (09/06). The benchmark Jakarta Composite Index plunged 3.12 percent to 4,858.31 points amid heightened expectation of a US interest rate hike as well as worries about the Greek debt situation in the Eurozone. The performance of other Asian stock indices was mixed on Tuesday morning with Shanghai, Singapore and South Korea showing modest gains, while New Zealand, Hong Kong, Malaysia and Taiwan were down marginally.

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Rising indices on Wall Street at the end of last week were a major factor behind rising stock indices in Asia, including Indonesia's benchmark stock index (IHSG), on Monday (16/09). For market players this development was a sign to enter the market. Moreover, expectation has emerged that the Federal Reserve will not take any drastic decisions in the FOMC meeting (on 17-18 September) regarding its quantitative easing program. This expectation has calmed down markets. Indonesia's IHSG rose 3.35 percent to 4,522.54 points.

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Last week, Indonesia's benchmark stock index (IHSG) climbed 7.3 percent to end at 4,375.53 on Friday (13/09). This growth is remarkable as it remains unknown what the Federal Reserve will do with its quantitative easing program (QE3). The next Fed meeting - scheduled for 17-18 September - is expected to provide more clarity regarding this matter. Positive sentiments that lifted the IHSG were Indonesia's slightly increased foreign exchange reserves, its stable rupiah after another BI rate hike, and the Bilateral Swap Deals (BSA) with Japan and China.

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Despite concerns that Indonesia's benchmark stock index (IHSG) would weaken on Thursday's trading day (12/09), the index ended 0.17 percent up to 4,356.61 points. Indices on Wall Street and in Asia impacted positively on the IHSG and kept foreign investors increasing their stock portfolios in Indonesia. Moreover, the Bank Indonesia's decision to raise the country's benchmark interest rate (BI rate) by 25 basis points to 7.25 percent was generally well-received by investors. Banking stocks helped to support the IHSG.

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Without any real negative global reasons, Indonesia's benchmark stock index (IHSG) was down 0.20 percent to 4,349.42 points. Apparently, market participants were looking for profit taking after the index rose sharply in the last couple of days. There may also have been the psychological influence of the gaps at 4,191-4,225 and 4,072-4,102 that still need to be closed. Will the IHSG close these? Compared to the general upward trend of Asian indices, it seems strange if the IHSG would deviate from this trend only to close the gaps.

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Good economic data from China and Japan made many Asian stock indices go into green territory, including Indonesia's benchmark stock index (IHSG) which gained 3.98 percent to close at 4,358.14 points on Tuesday (10/09) despite the lack of positive internal factors in Indonesia. Promising European openings also provided support for the index. Foreign investors, similarly to yesterday, were net purchasers of Indonesian assets, while domestic investors mostly sold their assets.

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The release of positive economic data in China at the end of last week were continued into this week and had a good impact on regional stock indices. Most Asian stock indices continued their upward movement. This time, Indonesia's benchmark stock index (IHSG) was able to join its regional peers. Although Indonesia's investment climate is still not conducive, foreign investors were back buying more Indonesian stocks than they sold. The index rose 2.92 percent to 4,191.26 points on Monday (09/09).

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Last week, Indonesia's benchmark stock index (IHSG) remained under pressure and was corrected 122,735 points, or 2.9 percent. At the start of the week, a number of important data were released. Inflation in August 2013 was 1.12 percent (month-to-month), 7.94 percent (calender year 2013), and 8.79 percent (year on year). Major contributors to Indonesia's inflation rate were food products (0.45 percent), followed by housing, water, electricity and gas (0.16 percent), and transportation, communication and financial services (0.16 percent).

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Although many global indices were up, Indonesia's benchmark stock index (IHSG) fell a total of 2.93 percent during last week's trading. One important issue on global indices is the tapering off of the Federal Reserve's quantitative easing (QE3). On 17 and 18 September, the next meeting of the FOMC is scheduled, which is expected to discuss the future of QE3. Notably, as the meeting comes closer, most global indices in fact rise. Thus, market players seem to have become less concerned about an end to QE3.

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Contrary to Thursday's trading day (05/09) when the benchmark stock index of Indonesia (IHSG) opened strong but ended in the red, on Friday (06/09) it was the other way round. The IHSG started negative but ended the day 0.53 percent up to 4,072.35 points. Factors that made a negative impact on the IHSG were the continueing fall of the rupiah as well as speculation that Indonesia's foreign exchange reserves would decline again at end-August. However, a number of rising Asian indices influenced the IHSG in a positive way.

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Indonesia's main stock index (IHSG) started rather well on Thursday's trading day (05/09) despite the fact that most analysts expected a weakening index. Positive market sentiments were triggered by rising Asian stock indices (brought on by yesterday's rising indices on Wall Street). However, as the rupiah continued its downward spiral, market players began to exit the market, thus resulting in the 0.55 percent fall of the IHSG to 4,050.86. Foreign investors were net sellers of Indonesian assets, while domestic players recorded a net purchase.

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