Artificial sweetener sorbitol manufacturer Sorini Agro Asia Corporindo will voluntarily delist its shares from the Indonesia Stock Exchange (IDX) as it fails to comply with a minimum free-float regulation. Per 31 January 2016 all listed companies in Indonesia are required to have a minimum free float ratio of 7.5 percent (of its paid-up capital) and at least 300 shareholders (BEI No. Kep-00001/BEI/01-2014). These new regulations were implemented in order to boost liquidity in Indonesia's stock market.

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What are good stock picks in 2017? According to Maybank Kim Eng Securities, those listed companies on the Indonesia Stock Exchange that are set to see a good performance this year are Indofood Sukses Makmur (consumer goods), Telekomunikasi Indonesia (telecommunications), Astra International (automotive), Bank Rakyat Indonesia (banking) and Jasa Marga (toll roads). All are key blue chips with a long history in Indonesia. Lets take a quick look why these shares are advised by Malaysia-based Maybank Kim Eng.

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Indonesian stocks are expected to rise on Wednesday (04/01) amid positive sentiments stemming from around the globe although the strong US dollar, which remains near 14-year highs, puts some pressure on commodity prices (most notably on crude oil). On Tuesday (03/01), Indonesia's benchmark Jakarta Composite Index declined 0.39 percent to 5,275.97 points as investors engaged in profit taking after the significant rally that occurred during the last couple of days before the end of 2016.

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When on Friday afternoon (30 December 2016) the Indonesia Stock Exchange (IDX) closed its doors it effectively brought the year 2016 to an end in terms of stock trading on the local bourse. On Friday Indonesia's benchmark Jakarta Composite Index fell 0.11 percent to 5,296.71 points after two days of impressive gains. However, when looking at full-year 2016 the Jakarta Composite Index climbed 15.32 percent, hence being the second-best performing (national) benchmark stock index (after Thailand) in the Southeast Asian region in 2016.

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Indonesian stocks surged further on Wednesday (28/12). The benchmark Jakarta Composite Index (IHSG) was up 1.75 percent to 5,192.19 points by 11:00 am local Jakarta time on Wednesday, extending the impressive 1.50 percent jump one day earlier that effectively ended a nine-day losing streak for Indonesian stocks. This positive performance is, partly, believed to be the result of "window dressing" ahead of the year-end. Meanwhile, other Asian markets are rather mixed today.

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On the last trading day before the Christmas break, Indonesia's benchmark Jakarta Composite Index fell for the ninth straight day, the longest losing streak since August 2005. On Friday (23/12) the index fell 0.30 percent to 5,027.70 points. The performance of Indonesian stocks was in line with other markets in Asia. Ahead of Christmas and New Year festivities, trade volume is low as investors are taking a break. Meanwhile, there are no positive sentiments stemming from the Indonesian market.

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Indonesian stocks should manage to climb today. In early morning trade on Thursday (08/12) MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.4 percent touching a one-month high supported by US stocks setting another fresh high overnight, while bonds rallied on expectation that the European Central Bank (ECB) is to announce that it will extend its asset buying program later today in its policy meeting. Meanwhile, Nikkei futures point at an opening gain of around 1 percent.

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Contrary to most other Asian stock indices, Indonesia's benchmark Jakarta Composite Index opened in the green zone on Monday morning (05/12). While, most markets are plagued by the outcome of Italy's referendum on Sunday (and Italian Prime Minister Matteo Renzi announcing his resignation), Indonesian stocks still seem to continue with the relief rally after the peaceful anti-Ahok demonstration on Friday (02/12). However, rupiah weakness, particularly as the US Federal Reserve may raise rates can limit the rise of local stocks.

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The Indonesia Stock Exchange (IDX) requests 28 companies that are listed on the IDX to comply with the minimum free float and shareholder requirements that are stipulated by BEI No. Kep-00001/BEI/01-2014. Initially, the IDX provided time until 31 January 2016 for publicly-listed companies to comply with new rules. However, currently there are still 28 companies that fail to meet the new requirements (but which forms an improvement from the year-start when 90 companies still had to comply with new regulations).

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While most Asian stock indices were in the red zone on Friday (02/12), Indonesian stocks bucked the trend. Indonesia's benchmark Jakarta Composite Index rose 0.91 percent to 5,245.96 points, while the Indonesian rupiah appreciated 0.39 percent to IDR 13,512 per US dollar (Bloomberg Dollar Index). While global investors were cautious ahead of the new US payroll data (to be released later on Friday), domestic investors poured money into Indonesian stocks. What explains this performance today?

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Indonesia's benchmark stock index (IHSG) could not continue its rebound on Wednesday (04/09). Amid mostly falling Asian markets, the IHSG fell 2.17 percent to 4,073.46 points. Asia was on a four-day winning streak but after president Obama received support from the Republican speaker of the House of Representatives, John Boehner, regarding military actions in Syria, global investors shied away from riskier assets. Indonesia and India are currently viewed as weak investment targets due to the countries' current account deficits.

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Indonesia's benchmark stock index (IHSG) rebounded on Tuesday (03/09) amid rising Asian stock indices inflicted by optimism about economic recovery in China and the USA. The IHSG rose 1.53 percent to 4,164.12 points. Agribusiness and mining stocks were the top performers today, while the miscellaneous industry, which fell 0.09 percent, was the only sectoral index on the Indonesia Stock Exchange (IDX) that was down. The rupiah depreciated against the US dollar as investors are concerned about July's USD $2.3 billion current account deficit.

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Indonesia's benchmark stock index (IHSG) went down 2.23 percent on Monday (02/09) after Statistics Indonesia (BPS) released a number of macroeconomic data. The country's inflation pace increased to 8.79 percent year-on-year, while it posted a record monthly trade deficit in July 2013 (USD $2.31 billion). Investors have been highly concerned about the development of Indonesia's current account deficit and after it became known that the figure was high in July, the IHSG quickly lost value.

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Last week Friday (30/08), Indonesia's benchmark stock index (IHSG) ended 2.23 percent up to the level of 4,195.09 points, continuing its three-day 'winning streak'. Underlying reasons being the central bank's new policy package (that was released as a response towards the negative impact of global turmoil on Indonesia's financial stability) and the higher benchmark interest rate (BI rate). The BI rate was raised 50 basis points on Thursday (29/08) to 7.0 percent to stabilize the weakening rupiah that fell to IDR 11,000 per US dollar.

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The decision of Indonesia's central bank (Bank Indonesia) to raise its benchmark interest rate by 50 basis points to 7.00 percent and its deposit facility (Fasbi) by 0.50 percent to 5.25 percent seem to have had a good impact on the value of Indonesia's stocks and the rupiah. Indonesia's benchmark stock index (IHSG) rose 2.23 percent to 4,195.09 points on Friday (30/08), implying a three-day winning streak. Since the first trading day of this year, the IHSG is down 3.47 percent.

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For the second day in a row Indonesia's benchmark stock index (IHSG) was able to post a gain. Today, it rose 1.92 percent to 4,103.59 points. This rebound is possibly the result of the higher key interest rate. Yesterday, it was announced that the central bank (Bank Indonesia) scheduled an extra meeting to discuss monetary policy. Immediately speculation emerged that the BI rate might be raised by 50 basis points. And indeed it was raised, much to the liking of many investors and analysts.

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Although Indonesia is one of the victims of the reversal of investment flows from emerging markets to developed markets, it is still far from a crisis. Global uncertainty regarding the possible ending of the Federal Reserve's monthly USD $85 billion bond-buying program (QE3) and, to a lesser extent, the possible invasion of the US in Syria have worried investors and resulted in the withdrawal of funds from emerging markets. Funds are flowing back to western developed countries that have recently been showing signs of continued economic recovery.

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Most of us who were hoping for a limited weakening of Indonesia's benchmark stock index (IHSG) today (27/08) were to be disappointed. Instead of a limited decline, the IHSG fell 3.71 percent to 3,967.84 points. Market participants are concerned about both the global and domestic economy, thus pulling money out from Indonesia. The weakening rupiah and weak stock index openings in Europe (due to tensions in Syria) pushed the IHSG further down into red territory. Foreign investors were again net sellers of Indonesian assets.

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After market participants had time in the weekend to think over the 'rescue packages' of the Indonesian government and central bank (Bank Indonesia) that were released on Friday (23/08), they seemed unconvinced about the short-term impact of the packages. As a result, Indonesia's main stock index (IHSG) fell 1.18 percent to 4,120.67 points on Monday (26/08), which is the IHSG's lowest level since 7 September 2012. The Indonesian rupiah gained 0.06 percent to IDR 10,841 (Bank Indonesia's mid rate).

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Despite the announcement of an economic policy package aimed at overcoming the impact of global financial turmoil, Indonesia's main stock index (IHSG) was not able to end the week on a positive note, while the value of the rupiah on the spot market depreciated 1.68 percent to IDR 11,058 per US dollar on Friday (23/08) amid a majority of strengthening Asian currencies, including the Indian rupee (0.67 percent) and the Thai baht (0.28 percent). Based on Bank Indonesia's mid rate, the rupiah fell 4.4 percent against the US dollar to IDR 10,848 last week.

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