Indonesia's slowing economic growth, weaker purchasing power and an 8.7 percent increase in excise on tobacco products (in early 2015) had a relatively small impact on the financial performance of Indonesia's listed tobacco companies HM Sampoerna, Gudang Garam, Bentoel Internasional Investama and Wismilak Inti Makmur. Whereas companies active in various other sectors of the Indonesian economy were plagued by falling revenue and profit figures, these tobacco firms still posted solid gains in revenue and - to a lesser degree - net profit growth. This shows that Indonesian smokers are faithful to their "death stick".

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In line with expectation, the central bank of Indonesia (Bank Indonesia) cut its benchmark interest rate (BI rate) by 25 basis points to 6.75 percent on Thursday (17/03) at its two-day policy meeting. It is the third straight month of monetary easing in Southeast Asia's largest economy. In the preceding two months the lender of last resort had also cut borrowing costs by 0.25 percent, each month. Furthermore, the deposit and lending facility rates were also cut by 25 basis points to 4.75 percent and 7.25 percent, respectively (effective per 18 March 2016).

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Although Indonesia's benchmark Jakarta Composite Index has risen 4.81 percent since the start of 2016 (thus being among the world's best-performing benchmark stock indices so far this year, especially if the 5.17 percent appreciation of the rupiah is included into the calculation), not all Indonesian blue chip stocks, or big caps, have risen. Several examples are Blue Bird, Bank Pan Indonesia, Bank Permata, Global Mediacom, Surya Citra Media, and Sarana Menara Nusantara. Why did these stocks not rise so far in 2016? We zoom in on three cases.

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For some Indonesian investors, trends in the precious metals markets might seem difficult to understand. This is often because changing valuations are often based on external events that are not directly related to the Indonesian economy. But when we look at the global factors that typically create rising and falling price moves in the precious metals, it becomes easier to find ways of positioning investments for what is likely to come next.

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