Indonesian Shares Fall on Renewed Taper Worries; Philippines, Thailand Rebound: Dow Jones Indonesian shares fell to their lowest level since early September and the rupiah hit a fresh 4.5-year low against the U.S. dollar Tuesday on renewed concern that the country is unable to position itself to avoid heavy fund outflows when the U.S Federal Reserve scales back its bond-buying program. The benchmark JSX index fell 2.3% to 4235.2--its biggest intraday loss since Sept. 10--a day after Indonesias maiden government issuance of dollar-denominated debt was substantially undersubscribed. The country, which is seen as vulnerable to outflows due to its current account deficit, is struggling to shore up its economy before the Fed tightens, thought to be early next year. Among the biggest losers in Jakarta were machinery and mining company PT United Tractors and consumer goods producer PT Unilever Indonesia, which lost 7.1% and 6.6%, respectively. Despite worsening investor sentiment, Indonesias central bank said it wasnt worried about weakness in the rupiah. The current level of the rupiah is good enough, in line with the current 1/8economic 3/8 conditions, Bank Indonesia senior deputy governor Mirza Adityaswara told reporters Tuesday. Markets in Thailand and the Philippines tentatively traded in positive territory Tuesday, for the first time in over a week. Thailands SET was up 0.7% in its last hour of trading, even as anti-government protests continued in Bangkok. The Philippines PSE Composite gained 0.4%, indicating that the market may have bottomed out after sustaining falls of over 6% this month after Typhoon Haiyan devastated its central region on Nov. 8. JG Summit Holdings Inc., a conglomerate with interests in property and food manufacturing, weighed on the benchmark after it fell 6.8%. The company raised $201 million from the sale of 220 million shares in an overnight equity placement that it said would help fund its acquisition of a stake in Manila Electric Co. Malaysias KLCI ended the day flat, shrugging off early gains in its last hour of trading. A positive prediction from the countrys second finance minister that fourth-quarter economic growth would top 5% failed to rally markets. In Singapore, equities traded 0.2% lower by market close. After a relatively strong morning, the benchmark FTSE Straits Times Index fell, following a data release showing that growth in manufacturing output slowed in October, coming in slightly shy of analysts expectations. Among regional currencies, the Philippine peso lost 0.3% against the U.S. dollar, while Thailands baht was down 0.1%. Singapores dollar gained 0.1%.
Posted on: Tue, 26 Nov 2013 10:23:02 +0000
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