Indonesian Stocks Recoup Early Losses as Locals Hunt for Bargains
Jakarta. The Jakarta Composite Index rose for the second day on Wednesday as local investors continued their hunt for bargain stocks, overcoming weakness earlier in the day.
The benchmark index rose 0.2 percent to 4,237.73 on the back of gains in manufacturing and finance stocks.
Still, foreign investors remained in selling mode, dumping Rp 527 billion worth of stocks more than they bought. Foreigner investors have sold Rp 6.3 trillion worth of stocks so far this year.
Large institutional investors like insurance and pension funds have expressed their intention to enter the market in search of cheap stocks, while listed state-owned enterprises are now allowed to start buying back their shares without having to secure approval from the shareholders.
The rupiah continues to weaken, trading at 14,102 against the US dollar on Wednesday, from 14,067 the day before, data from Bank Indonesia showed.
Yields on government bonds due in 2025 dropped to 9.0470 percent from 9.0724 percent the day before, according to data from the Indonesia Bond Pricing Agency.
Tags: Keywords: