Most Asian stock markets were stronger on Wednesday, led by Japan's Nikkei 225 Index which rose 2.70 percent on expectation of further government stimulus measures. Meanwhile, Indonesia's benchmark Jakarta Composite Index rose 1.09 percent to 4,223.91 points supported by the region's rising stock indices as well as on the back of the second installment of Indonesia's economic policy package. Meanwhile, the rupiah appreciated 0.26 percent to IDR 14,653 per US dollar (Bloomberg Dollar Index).

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Indonesian stocks experienced a remarkable roller coaster ride on Tuesday (29/09). After opening the benchmark Jakarta Composite Index fell more than two percent to a near three-year low. However, the index managed to finish the trading day at 4,178.41 points, a 1.41 percent rise. Meanwhile, Indonesia's rupiah managed to curb losses. Based on the Bloomberg Dollar Index, the rupiah passed beyond the IDR 14,800 per US dollar level several times but at the end of the day it had only weakened 0.11 percent to IDR 14,691 per US dollar.

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Indonesia's benchmark stock index (Jakarta Composite Index) was down over 2 percent, touching a three-year low, while the rupiah weakened beyond the IDR 14,800 per US dollar level (Bloomberg Dollar Index) around 09:00 am local Jakarta time on Tuesday (29/09) as the global selloff persists. Investors are concerned about the economic conditions of China and the world, low commodity prices, while anticipating a Fed Fund Rate hike.

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Stock indices in Asia were mixed on the first trading day of the week. Indonesia’s benchmark Jakarta Composite Index plunged 2.11 percent to 4,120.50 points (a two-year low), while the rupiah (remarkably) appreciated 0.13 percent to IDR 14,674 per US dollar according to the Bloomberg Dollar Index. Meanwhile, European markets were down after opening on Monday (28/09). What influenced these markets today?

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After opening on Monday (28/09) Indonesian stocks rapidly fell amid mixed Asian markets. The main factor that causes several Asian markets to fall is declining Chinese industrial profits (triggering concern about a deepening slowdown of the world’s second-largest economy). China’s industrial profits fell 8.8 percent in August, down from July’s 2.9 percent drop. By 09:50 am local Jakarta time, the benchmark Jakarta Composite Index was down 1.41 percent to 4,150.27 points.

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Stock markets in Asia were mixed on Friday (25/09) after Federal Reserve Chairwoman Janet Yellen said in a speech at the University of Massachusetts that the US central bank is still on track to raise interest rates before the year-end (provided no economic shocks take place as the move is data-dependent). After this looming hike, Yellen suggests to gradually tighten US monetary policy thereafter.

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In line with other Asian emerging markets and currencies, Indonesian stocks and the rupiah are weakening on Friday (25/09) after Federal Reserve Chairwoman Janet Yellen said during her speech at the University of Massachusetts that US interest rates are likely to be raised before the year-end, provided no economic shocks occur. Yellen stated that most FOMC participants agree on a Fed Fund Rate hike later this year, followed by gradual further monetary tightening thereafter.

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Global markets declined for a fifth straight day on Thursday (24/09) on persistent negative sentiments related to sluggish global economic growth, the Volkswagen emission scandal and the continuation of uncertainty about the timing of higher US interest rates after the Federal Reserve kept rates unchanged at its September policy meeting. Japan’s Nikkei 225 Index fell 2.76 percent today, while European and US stocks are deep in the red. Indonesian markets were closed due to Idul Adha celebrations (the Muslim day of sacrifice) and will therefore respond to these developments on Friday (25/09).

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In line with other Asian markets, Indonesian stocks and the rupiah are weakening heavily on Wednesday (23/09). Based on the Bloomberg Dollar Index, Indonesia’s rupiah had depreciated 0.71 percent to IDR 14,655 per US dollar by 11:08 am local Jakarta time, while the benchmark Jakarta Composite Index had fallen 1.56 percent to 4,276.43 points by the same time, with the financial sector in particular taking a hit. There are several causes that explain this weak performance today.

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Most Asian markets started weak in the new trading week on persistent uncertainty about the timing of higher US interest rates after the US Federal Reserve decided to postpone a Fed Fund Rate hike last week. This context raises investors’ appetite for safe haven assets. By 13:45 pm local Jakarta time on Monday (21/09), Indonesia’s rupiah had depreciated 0.66 percent to IDR 14,469 per US dollar according to the Bloomberg Dollar Index, while the benchmark Jakarta Composite Index was down 0.22 percent to 4,370.63 points.

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Several Indonesian companies decided to delay their initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2014 due to great political uncertainties brought about by Indonesia’s ‘political year’ (legislative and presidential elections). Moreover, sluggish global economic growth, slowing domestic growth as well as the scrapping of the Federal Reserve’s quantitative easing program impacted on investors’ confidence. Therefore, only 20 companies conducted an IPO last year. This year we should see more IPOs in Indonesia.

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Both Indonesian stocks and the rupiah continued to slide on Thursday (04/06) and seem to be caught in a vicious downward spiral brought about by both domestic and international factors. Indonesia’s benchmark stock index (Jakarta Composite Index) fell 0.68 percent to close at a five-week low of 5,095.82 points, while the rupiah depreciated 0.39 percent to IDR 13,281 per US dollar (Bloomberg Dollar Index), a level last seen in the late 1990s when the country was plagued by the Asian Financial Crisis.

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On the first trading day of the new week, both Indonesian stocks and the rupiah moved more-or-less sideways. Generally, indices in Southeast Asia were mixed as positive external sentiments were offset by local negative sentiments. In the case of Indonesia, negative local sentiments stemmed from the higher-than-estimated inflation figure in May and continued contraction of the manufacturing industry. Positive market sentiments stemmed from the USA where GDP growth was revised to minus 0.7 percent in Q1-2015.

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Most stock markets and currencies in Southeast Asia weakened on Friday (29/05), including Indonesia’s benchmark Jakarta Composite Index and the rupiah. The Jakarta Composite Index fell 0.40 percent to 5,216.38 points, while the rupiah depreciated 0.01 percent to IDR 13,224 per US dollar according to the Bloomberg Dollar Index. Over the past week, Indonesian stocks and the rupiah weakened primarily due to the Greek debt crisis, looming higher US interest rates and the lack of positive domestic factors.

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Prospects for initial public offerings (IPOs) in Indonesia are positive in 2015, or, at least more positive than in 2014 when Indonesia’s ‘political year’ (legislative and presidential elections) caused severe political uncertainties in the market. However, the country’s slowing economic growth and looming capital outflows brought about by expected further monetary tightening in the USA before the year-end, has made market participants cautious. The Indonesia Stock Exchange (IDX) expects a total of 32 new listings on the IDX in 2015, up from 20 last year.

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In line with other Asian indices, Indonesian stocks rose on Tuesday (26/05). The benchmark Jakarta Composite Index rose 0.62 percent to 5,320.90 points. Positive sentiments did not originate from the USA as US stock markets were closed for a holiday yesterday but primarily stemmed from China where the economic planning agency announced to implement several new policies in a bid to boost the sluggish economy. The rupiah, however, depreciated 0.25 percent to IDR 13,220 per US dollar based on the Bloomberg Dollar Index.

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For a good portion of this year, the stock market in Indonesia has been met with selling pressure. There is a reasonable basis for this, as we have seen some disappointments in corporate earnings that have led some of the biggest names in the country to trade lower. But there are external events at work, as well. And some of these factors might not be readily apparent to many regional investors. One of these is the sovereign debt situation in the Eurozone.

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Stock markets in Indonesia have been particularly volatile in recent weeks, and this has left many investors wondering about whether or not the rally that started last October is still viable and ready to continue. Last month, the MSCI Indonesia Index (which trades under the stock symbol EIDO) took a large drop - from well above the 6,500 mark to below 6,000. From a percentage perspective, a move like this can generate significant losses for those that bought into Indonesian stocks while they were still at elevated levels.

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A selection of corporate earnings reports (covering net profit and revenues for full-year 2014) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX) is presented by Indonesia Investments below. The companies are categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment.

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Mitra Keluarga Karyasehat, a leading Indonesian hospital operator and subsidiary of the Kalbe Group, plans to raise about IDR 4.2 trillion (USD $328 million) in an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in March 2015. The company plans to offer up to 261.9 million shares, or 18 percent of its enlarged equity, to the public. Five percent of this total constitute new shares, while 13 percent are shares divested by private equity firm Lion Investment Partners.

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