Stock Market & Rupiah Update Indonesia: Down on Trade Data
Contrary to the positive performance of most emerging market stocks, Indonesia's benchmark Jakarta Composite Index fell more than one percent on Monday (15/08). While other markets were supported by advances in crude oil prices and a rally in Chinese shares, Indonesian shares declined on the nation's weak trade data that were released by Indonesia's Statistics Agency today. Investors were eager to use this opportunity to engage in profit taking as the Jakarta Composite Index nearly touched a record-high level after an impressive recent rally.
At the start of the day, Asian markets were plagued by weaker-than-estimated Q2-2016 GDP growth in Japan at 0.2 percent year-on-year (y/y), below the median forecast of a 0.7 rise. A rally in China (speculation of more property takeovers lifted Chinese stocks to a seven-month high) as well as higher crude oil prices (hitting a one-month high on speculation of output cuts among major producers) managed to offset the negative impact of Japan's GDP growth result.
However, Indonesian stocks rapidly fell after data were released that showed Indonesia's July trade surplus slid to USD $598 million, down from a USD $879.2 million surplus in the preceding month and considerably below analyst forecasts. Indonesia's exports fell 17 percent (y/y), while imports fell 11.6 percent (y/y) in July 2016. At the end of the trading day the Jakarta Composite Index was down 1.05 percent to 5,320.56 points, touching a two-week low.
The Indonesian rupiah appreciated 0.21 percent to IDR 13,090 per US dollar (Bloomberg Dollar Index) on Monday. Meanwhile, Bank Indonesia's benchmark rupiah rate (the Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.01 percent to IDR 13,121 per US dollar.
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia
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