Indonesia stocks gained on Friday in the wake of bargain hunting in troubled huge caps as investors assessed political unknowns after the country’s main opposition party won elections in an unconvincing manner.
Some investors bought some selected high-flying stocks after a huge sell-off on Thursday that saw the Jakarta Composite Index lose more than 3% of its stock.
The benchmark stood up at 0.4% at midday, as it approaches a weekly drop of 1.5% after gaining for two straight weeks.
“We are likely to see more foreign selling today. It is time to buy on weakness … We suggest investors buy stocks with nearer-term catalysts such as good first quarter result,” Trimegah Securities’s strategists said in a report.
Stocks of agribusiness Wahana Pronatural jumped 17.5% while Tana Laut, a marine port firm added 10%, with the two firms topping the index’s best performers, as Reuters reports.
Early poll results showed that the Indonesian Democratic Party-Struggle (PDI-P) got less than 20% of votes in the country’s parliamentary election, more than any other party but still short of the prerequisite for nomination of its own presidential candidate.
Other Southeast Asian shares were down amid a growing sell-off in the US stock market that trickled down to Asia and hurt markets that had been relatively solid until now.
The decision by China not to implement major economic stimuli after weak trading data in March hampered investors.
The PSEi of Philippines was 0.6 down at close standing at 6,596.9 after losing its Thursday gains. Property firm Ayala Land Inc dropped 2.7% while Metropolitan bank & Trust Co. plunged 1.9%.
Thailand’s SET went down 0.1 towards close of trading as FTSE Straits Times Index of Singapore lost 0.2%. KLCI of Malaysia sunk 0.4%.
According to Wall Street Journal, only Indonesia’s JSX stocks gained on Friday.
Shares in Malaysia and Thailand are likely to suffer modest losses for the current week.
To contact the reporter of this story; Jonathan Millet at email@example.com
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