Investment banking fees fell 7 percent worldwide in 2016, dragged down by a 23 percent fall in equity capital market fees, Thomson Reuters data showed on Wednesday (04/01), raising the pressure on banking giants fighting to restore profitability. (Antara Photo/Sigid Kurniawan)

JCI Continues Decline Amid Geopolitical Tension Between US and China


DECEMBER 19, 2016

Jakarta. Indonesia's benchmark stock index declined for a fourth consecutive day on Monday (19/12) as Asian stocks closed lower amid continuing geopolitical tension over China's seizure of a United States underwater drone in the South China Sea.

The Jakarta Composite Index closed 0.76 percent lower at 51,191.91, following Friday's 0.42 percent decline. Decliners beat gainers by 217 to 98.

Foreign investors, accounting for 35 percent of the total trade on the day, sold Rp 422.3 billion ($31.5 million) more in shares than they bought. This was offset domestic investors, who bought Rp 422 billion more in shares than they sold.

The biggest laggard of the day was cigarette producer HM Sampoerna, with its share price closing 2 percent lower at Rp 3,920. The company has Rp 455.97 trillion in market capitalization.

Reliance Securities analyst Lanjar Nafi said foreign investors continued to repatriate their assets from emerging markets, dragging Asian stocks lower.

China's seizure over the underwater drone in international waters on Thursday last week has fueled tension between the two countries.

However, according to the latest report, China has agreed to return the drone to the United States, but the two countries are still working the details of how and when to do it.

Singapore's FTSE ST Index declined by 0.84 percent to 2,913.08, while Hong Kong's Hang Seng closed 0.85 percent lower at 21,832.68. Japan's Nikkei benchmark index fell by 0.05 percent to 19,391.60.

The rupiah traded at 13,381 against the US dollar on Monday, compared to 13,426 on Friday, according to the Jakarta Inter-Bank Spot Dollar rate, compiled by Bank Indonesia.