In line with nearly all other Asian stock markets, Indonesia’s benchmark Jakarta Composite Index (IHSG) plunged 2.15 percent to 4,412.46 points on Tuesday (01/09). After Asian trade had closed European and US indices also plummeted severely. The main reason is today’s announcement that China’s manufacturing fell to a three-year low in August 2015, yet another sign that China’s economic growth is declining faster than estimated. The country’s manufacturing PMI dropped to 49.7 in August from 50.0 in July (a reading below 50.0 indicates contraction).

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Most Asian stock markets are strengthening on Friday after indices on Wall Street rose yesterday on strong US economic growth. The US economy grew 3.7 percent (y/y) in the second quarter of 2015 (much higher than the 2.3 percent estimated previously). As a result, the Dow Jones Industrial Average surged 2.27 percent while global oil prices rebounded over 10 percent on Thursday (27/08).

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In line with major stock indices in Asia, Indonesia’s benchmark Jakarta Composite Index rebounded directly after the opening of trade on Thursday (27/08). The index surged 2.51 percent to 4,344.11 points. Most indices in Asia were up after the US Dow Jones Industrial Average climbed nearly 4 percent on Wednesday (26/08), effectively ending a six-day losing streak, on heightened expectation that the Federal Reserve will not raise its key Fed Fund Rate yet in September. However, markets are still plagued by severe volatility.

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The Indonesia Stock Exchange (IDX) announced today (25/08) that it has curtailed the daily limit on share price losses to ten percent. This means that shares of listed Indonesian companies on the IDX can fall up to a maximum of 10 percent per day (from the range of 20 to 35 percent previously). This revised regulation aims to cushion the negative effects of current high (global) market volatility. Yesterday (‘Black Monday’), the Jakarta Composite Index fell to a 20-month low. The cap on upper price movements remains 20-35 percent per day.

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Most analysts expected that Indonesia’s benchmark stock index (Jakarta Composite Index) would be plagued by another selloff on Tuesday (25/08) as the major stock indices in the USA and Europe plunged yesterday, while commodity prices hit new lows (crude oil fell below USD $40 per barrel for the first time since 2009). Moreover, Shanghai and Japan opened in the red. However, reality proves differently. Around 11:25 am local Jakarta time the Jakarta Composite Index was up 1.77 percent to 4,237.28 points.

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There are few signs that Indonesian stocks and the rupiah will rebound on Tuesday (25/08). Benchmark stock indices of China and Japan continued to fall directly after opening on Tuesday and are therefore expected to drag down other markets in Asia. Yesterday, major markets in the USA and Europe slumped, while commodity prices hit new lows (oil slid below USD $40 per barrel for the first time since 2009). The rupiah continued to weaken after opening on Tuesday to IDR 14,065 per US dollar by 09:06 am local Jakarta time.

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The global selloff hit Asian markets on Monday (24/08). Stock indices and currencies in the Asian region collapsed dramatically on Monday morning. Indonesia’s benchmark Jakarta Composite Index (IHSG) was down 4.66 percent to 4,133.33 points by 10:50 am local Jakarta time, while the rupiah had weakened beyond IDR 14,000 per US dollar according to the Bloomberg Dollar Index. China’s benchmark Shanghai Composite Index plunged over 8 percent. What is happening to the emerging market assets in Asia today?

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The Indonesian rupiah continues to flirt with a 17-year low as the currency is getting closer and closer to the IDR 14,000 per US dollar level. Meanwhile, Indonesian stocks took another blow as the country’s benchmark stock index (Jakarta Composite Index) fell 2.39 percent on Friday (21/08). Such turmoil is not only confined to Indonesia but was felt across Asia and the West. Markets were plagued by selloffs in energy shares (due to falling oil prices) and uncertainty about the timing of higher US interest rates.

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Contrary to the expectation of most analysts, the US Federal Reserve will possibly refrain from raising its key interest rate in September. On Wednesday evening (19/08) the minutes of the Fed's latest FOMC meeting (held in July) were released and they showed that most officials agreed that the US economy is heading for an interest rate hike but is not quite there yet as inflation remains lower than targeted while the current sluggish global economy poses risks and triggers high volatility.

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Indonesian stocks and the rupiah continued to weaken on Wednesday (19/08) in line with most other Asian stocks and currencies. Investors are cautious ahead of the release of the minutes of the Federal Reserve’s latest FOMC meeting, hence moving into safe haven assets. The minutes are to be released early Thursday morning local Indonesian time. Investors will be searching for signs informing about a possible Fed Fund Rate hike in September. If there are such signs, emerging market assets will be under heavy pressure tomorrow.

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Indonesia's main stock index (IHSG) was not able to continue yesterday's rise as investors, particularly domestic investors, engaged in profit taking. Foreign investors, who were net buyers of Indonesian assets, were not able to guide the IHSG to positive territory. Mixed Asian stock indices, responding to weak Chinese data, did not support Indonesia's index. Moreover, market participants expect that the rupiah will continue its weakening trend and have begun speculating whether the benchmark interest rate (BI rate) will be raised again.

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Yesterday's rising indices on Wall Street, high expectations of companies' financial reports and positive statements regarding economic growth in China resulted in a good day at the Indonesia Stock Exchange (IDX). Indonesia's main stock index, the IHSG, rose 1.88 percent to 4,767.16 on Tuesday (23/07), even though technical indicators seemed to predict a weakening of the index. Also the continued fall of the Indonesian rupiah did not turn investors away from the market. In fact, foreign investors were net buyers of Indonesian stocks.

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Indonesia's main stock index (IHSG) increased 3.98 points to close at 4,724.41 on the last trading day (19/07). During last week, the index rose a limited 1.97 percent amid the context of a weakening IDR rupiah (Indonesia's currency even fell below the psychological boundary of IDR 10,000 against the US dollar). The IHSG's performance last week was mainly supported by rising shares in the country's finance, property, construction and metal mining sectors, while the cement and plantation sectors were corrected.

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Indeks harga saham gabungan (IHSG) ditutup naik tipis pada hari perdagangan terakhir minggu ini (19/07). Indeksnya naik 0.08 persen ke level 4,724.41. Naiknya tipis saja karena indeks IHSG tidak didukung oleh pasar-pasar Asia yang sebagian besar turun karena para investor mencari untung setelah indeks-indeks cukup menguat selama minggu ini gara-gara pernyataan Ben Bernanke yang bilang program Quantitative Easing akan berlanjut selama ekonomi Amerika Serikat belum cukup sembuh. Ini melestarikan iklim bunga yang rendah.

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Retail sales in May 2013 rose 1.5 percent (month to month) or 8.6 percent (year on year) in Indonesia according to a publication of Indonesia's central bank (Bank Indonesia) released on Tuesday evening (16/07). The report made a positive impact on today's trading day as stocks in Indonesia's consumer goods sector rose 2.5 percent. Indonesia's main stock index (IHSG) gained 0.75 percent to end at the level of 4,679.00 points. Foreigner investors are still mostly avoiding the Indonesian stock market, but did record a net purchase today.

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Amid widespread profit taking, Indonesia's main stock index (IHSG) was able to post another day of limited growth on Tuesday (16/07). Asian stock indices, including the IHSG, were supported by rising American stock indices on Monday (15/07). Investors seem to be confident that Q2-2013 results of various Indonesian companies are positive and therefore engaged in stock trading although foreign investors were still mostly selling their Indonesian assets. At the end of today's trading day, the IHSG rose 0.18 percent to 4,644.04.

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After finishing last week with three consecutive days of gains, Indonesia's main stock index (IHSG) reached up to 4,633.11. However, its movement is still rather volatile. Property, finance and consumption stocks were sold by investors after seeing the benchmark interest rate raised by Bank Indonesia (by 50 bps to 6.50 percent) on Thursday (11/07), while metal stocks formed the main supporter of the index at the end of the week. Trading volume in the regular market hit 5.2 trillion and foreigners recorded net purchases of IDR 288 billion.

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In line with the general trend in the Asian region, Indonesia's main stock index (IHSG) rose 0.63 percent to 4,633.11 on Friday (12/07). One of the sectoral indices that did not follow this trend was Indonesia's property sector, which fell 0.66 percent on Friday. Since early June (and in line with large capital outflows), Indonesian property shares have experienced a significant fall of about 20 percent. Moreover, Bank Indonesia's decision to raise its benchmark interest rate by 50 bps to 6.50 percent will most likely add downward pressure on the sector.

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Indonesia's main stock index (IHSG) was able to continue its rise on Thursday (11/07) despite mixed markets in the United States and Europe, that were waiting for the release of the Federal Reserve minutes, on the previous day. The minutes and Ben Bernanke's speech indicate that the bond-buying program will be continued for a while and this made investors decide to buy Indonesian assets, particularly large cap stocks such as Unilever Indonesia, Bank Mandiri and Indocement Tunggal Prakarsa.

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After most European and American stock indices had been positive for a couple of days in a row, Indonesia's main stock index (IHSG) finally found its way up again. On Wednesday (10/07), the index rose 1.70 percent to 4,478.64 points. Moreover, on the previous day, Asian stock indices had shown a good performance and this convinced investors to buy Indonesian assets (which have fallen considerably recently) the next day. Despite foreigners still being net sellers of Indonesian stocks, a number of big cap stocks rose sharply.

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