Indonesia's benchmark Jakarta Composite Index (IHSG) rose 0.24 percent to 4,708.62 points, while the Indonesian rupiah appreciated 0.52 percent to IDR 13,439 per US dollar (Bloomberg Dollar Index) on Monday (22/02) amid mostly rising emerging market stocks and appreciating emerging market currencies. Investor appetite for riskier assets was triggered by higher global oil prices and rallying Chinese shares (brought about by optimism after the appointment of a new chairman of the China Securities Regulatory Commission.

Lanjut baca ›

Again, crude palm oil (CPO) shipments from Indonesia - the world's largest CPO producer and exporter - declined. Based on the latest data from the Indonesian Palm Oil Producers Association (Gapki), palm oil exports from Indonesia fell 16 percent on a month-on-month (m/m) basis to 2.1 million tons in January 2016. This decline was mainly caused by falling palm oil demand from the key export countries China and India.

Lanjut baca ›

There remains little hope to see rebounding coal prices soon. Indonesia's benchmark thermal coal price (Harga Batubara Acuan, or HBA), a monthly price set by the Ministry of Energy and Mineral Resources, fell another 4.29 percent month-to-month (m/m) to a new record low of USD $50.92 per metric ton (FOB) in February 2016 from USD $53.20 in the preceding month. Coal prices have difficulty to rise amid low crude oil and gas prices, while renewable energy sources are gaining popularity. Meanwhile, demand from China and India for Indonesian coal is falling.

Lanjut baca ›

This morning various economic data were released in Asia, most importantly data from China and Japan. China posted a record USD $63.3 billion trade surplus in January 2016, while Japan saw its gross domestic product (GDP) contract more-than-expected at 1.4 percent (y/y) in the fourth quarter of 2015. However, despite weak GDP growth data Japanese stocks managed to surge, while Chinese stocks tumbled after the record monthly trade surplus. How is that possible? And what about Indonesian assets today?

Lanjut baca ›

The Indonesian rupiah has been under pressure so far today (03/02) on concern that falling oil prices drag down other commodity prices, hence negatively affecting Indonesia's export performance. Yesterday, a global selloff in stocks occurred as oil prices were again touching the USD $30 per barrel mark. Emerging market currencies too are under pressure. The Indonesian rupiah had depreciated 0.79 percent to IDR 13,799 per US dollar (Bloomberg Dollar Index) by 12:55 pm local Jakarta time.

Lanjut baca ›

Asian stocks extended declines on Wednesday morning (03/02) as oil prices are again flirting with the USD $30 per barrel mark. Overnight, Brent crude fell 4.5 percent to USD $32 per barrel, while West Texas Intermediate plunged 5.5 percent to just below the USD $30 per barrel mark. In combination with concern about the sluggish economy of China it led to another round of global selloff. Overnight the Dow Jones industrial average fell 1.8 percent, the Standard & Poor's 500 index lost 1.9 percent, while the Nasdaq composite index lost 2.2 percent.

Lanjut baca ›

Asian stocks were mixed on Monday (01/02). However, Indonesia's benchmark Jakarta Composite Index rose 0.21 percent to 4,624.63 points after a volatile trading day (one hour before trading closed, the index was down more than one percent). Furthermore, the Indonesian rupiah appreciated markedly, while there occurred inflows into bonds. It seems that Japan's surprise move to introduce negative interest rates managed to offset the negative impact of weak manufacturing activity in China and falling crude oil prices.

Lanjut baca ›

Demand for steel in Indonesia is expected to rise in 2016 on enhanced infrastructure development. However, the majority of steel - approximately 60 percent of total demand in Indonesia - is still being imported from abroad (primarily China). Gusti Putu Suryawirawan, Director for Base Metal Industries at Indonesia's Industry Ministry, said the government is eager to support the domestic steel manufacturing industry in order to avert further domination of foreign manufactured steel on the Indonesian market.

Lanjut baca ›

The spotlight is - as usual - on China today as the world's second-largest economy released various macroeconomic data and markets' reaction toward these data will determine where stocks are heading for today. Wall Street will not influence Asian markets because this US financial and investment community was closed for Martin Luther King Jr Day on Monday. Meanwhile, the crude oil price remains low around USD $29 per barrel.

Lanjut baca ›

Asian stocks are again in deep red territory on Thursday (14/01), led by Chinese shares (which are on track to enter a bear market) as well as Japanese shares. It means that the rebound that had occurred earlier this week - caused by positive export data from China - was short-lived. The continued slide of oil prices (below USD $30 per barrel) and turmoil in China cause money to flow away from equity and fragile emerging market currencies.

Lanjut baca ›

After continuously reaching new record-high levels last week, the Indonesia Stock Exchange (IHSG) finally had to give up some of its gain and closed 1.04 percent lower. Declining Asian stock markets (excluding Japan's main index) and fears that the IHSG had already reached a (too) high level impacted on today's result. Market participants, who recently confirmed good corporate annual results of many companies by buying, now engaged in profit taking.

Lanjut baca ›

Indonesian companies engaged in the production of a variety of agricultural products, such as palm oil, experienced a rather poor year in 2012 regarding net profit. Global economic turmoil has reduced the world's consumption of palm oil in both the developed markets and developing markets. In particular decreased demand from China, the world’s biggest buyer after India, made a negative impact on the balance sheets of Indonesian companies.

Lanjut baca ›

On Tuesday's trading day, the Indonesia Stock Exchange (IHSG) was not able to maintain its record breaking upward movement. China's possible decision to limit credit growth in the property sector and the election in Italy contributed significantly to the decline of the IHSG. Moreover, it was influenced by poor openings of European stock markets. Investors thus decided to engage in profit taking, while waiting for further global developments.

Lanjut baca ›

After rallying for three days to try to end on a new resistance level, the Indonesia Stock Exchange (IHSG) finally had to retreat. As we suspected, the index weakened after its record high. Moreover, American and European indices were weak on Thursday, thus influencing the performance of the IHSG on Friday. Lastly, a number of Asian companies reported weak corporate reports that subsequently impacted on Asian stock indices, including the IHSG.

Lanjut baca ›