Data Showing 2015 Growth at 5-Year Low Pops Positive Sentiment on JCI

FEBRUARY 05, 2015

Jakarta. Indonesian stocks fell nearly one percent  on average in Thursday trading following  news from the Central Statistics Agency, BPS, that Indonesia’s economy in 2014 grew at the slowest pace in five years.

The benchmark Jakarta Composite Index fell 35.39 points, or 0.67 percent, to close at 5,279.90.

Around 5.02 billion shares worth a combined Rp 6.88 trillion ($545 million) changed hands on the Indonesia Stock Exchange on in Thursday trading. Decliners beat gainers by 167 to 109.

Foreign investors accounted for up to 38 percent total trading, buying Rp 89 billion more shares than they sold.

“There are no positive sentiments following the announcement by BPS regarding Indonesia’s economic growth in 2014,” Reza Priyambada, analyst at Woori Korindo Securities Indonesia said.

BPS announced Indonesia’s economy grew 5.02 percent last year, the slowest pace in the past five years, compared to 5.58 percent in 2013.

Reza said investors also saw growth in the fourth quarter of 2014 slow to 5.01 percent compared in the same period of 2013, when it grew 5.61 percent.

“Investors found the economy is vulnerable to the global economic climate and domestic factors, such as Bank Indonesia’s interest rate hike, which affected people’s consumption,” Reza said. The central bank increased its policy rate by 25 basis points to 7.75 percent last November.

Global bourses also weakened due to concerns about the Greek economy. South Korea’s Kospi fell 0.51 percent and Japan’s Nikkei fell 0.98 percent on Thursday.

Nearly all sectors declined, led by an index of 41 stocks classified as miscellaneous industry, which includes footwear, textiles and automotive; the MISC index declined 1.98 percent. An index of 36 consumer goods stocks declined 1.29 percent.