Indonesian Stocks Slump 2.5% as Trade Resumes After Idul Fitri

Indonesian stocks plunged on Wednesday (05/09) and the rupiah held near a 20-year low as fears of contagion from Argentina and South Africa hurt emerging markets, while Philippine shares slumped as the annual inflation rate hit its highest in nearly a decade in August. (Antara Photo/Sigid Kurniawan)

By : Nicole Pinto | on 12:30 PM June 20, 2018
Category : Business, Markets

Jakarta. 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, according to Reuters polls.

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.

Reuters

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