Latest news with #ShierLeeLim
Business Times
16-05-2025
- Business
- Business Times
Foreigners revisit Indonesia stocks on easing economic concerns
[JAKARTA] Indonesian stocks are poised for their first monthly inflow since September as subsiding economic concerns and attractive banking shares lure investors. The country's equity market posted US$83.8 million in net foreign inflows as at May 15 after seven straight months of outflows. That comes as the Jakarta Composite Index (JCI) nears a bull market, having recovered by roughly 18 per cent from a low in early April after the US paused reciprocal tariffs. The flows indicate appetite for the nation's shares is returning after worries about slowing economic growth, the new government's fiscal policy and global trade tensions hurt confidence towards local stocks over the past few months. 'Technical trading signals suggest positive momentum in the short to medium term for the JCI,' said Shier Lee Lim, lead FX and macro strategist at Convera Singapore. Heightened investor interest in bank stocks within South-east Asian markets is also helping the index, she added. Financials make up about 34 per cent of the benchmark, according to data compiled by Bloomberg. Still, further gains could be at risk as the gauge's current rally is not supported by strong economic fundamentals, according to a note by Rully Arya Wisnubroto, an analyst at PT Mirae Asset Sekuritas Indonesia. The country's economy in the first quarter grew at the slowest pace in more than three years. BLOOMBERG
Business Times
29-04-2025
- Business
- Business Times
Indonesian bonds set for first foreign outflows in five months
[JAKARTA] Indonesia's sovereign bond market is on course for its first monthly foreign outflows of the year as economic instability and a falling rupiah erode investor confidence. Foreign investors have net sold US$221 million worth of government debt this month, putting the market on track for its first outflow since November, according to Finance Ministry data compiled by Bloomberg as at Apr 22. The yield on the benchmark 10-year bond has fallen more than nine basis points over the same period. Uncertainty is weighing on the nation's assets. Bank Indonesia has warned investors' risk aversion may continue amid a rapidly changing global tariff situation, pledging further intervention to safeguard the rupiah. At the same time, President Prabowo Subianto's attempts to manage state finances while funding expensive high-priority projects fuel questions about economic growth. 'The country's ability to maintain economic stability and manage external risks will be critical in attracting renewed investor interest,' said Shier Lee Lim, lead FX and macro strategist at Convera Singapore. Foreign funds have pulled roughly US$3 billion from Indonesia's stock market in 2025, while the rupiah, which hit a record low earlier this month, is down more than 4 per cent this year – making it the only loser among Asia's major currencies. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The currency's slump stayed Bank Indonesia's hand for a third straight month last week as it kept interest rates unchanged, underscoring the delicate balancing act for the board as the tariff turmoil both weakens the rupiah and dims its growth prospects. 'The external sentiment added with domestic risk, which is the rupiah factor, becomes a double whammy for the investors,' said Adra Wijasena, fixed income analyst at Shinhan Sekuritas Indonesia. Elsewhere in the region, Malaysia saw US$690 million of overseas investment into conventional government bonds in the first quarter, according to central bank data. Meanwhile, foreigners have poured over US$2 billion into baht bonds this year following a recent buying spree, partly on dovish wagers on the Bank of Thailand. BLOOMBERG
