JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) dropped further 1.6% early this morning as investors continues selling off local stocks.
On Monday (Dec 15), IDX lost 1% with foreign investors’ net sell of Rp828.1 billion.
Foreign investors also pulled out their funds of 10.2 trillion from government bond portfolio investment this month, making total foreign portfolio in government bonds to decline to Rp471 trillion, representing 38.6% of total value of government bonds as of December 12, 2014.
The Fed Rate hiked expected to take place next year has prompted foreign investors to pull their funds out from the emerging markets including Indonesia.
The foreign investors’ net sell in local stocks and their pullout of funds from the government bonds has pressured the rupiah which on Monday fell further 1.64% this morning to Rp12,922 against the US dollar.
Asian stocks fell with regional index at two-month low, as oil’s slump and weaker-than-estimated.