Indonesia stocks end lower after volatility
By Alimat Aliyeva
Indonesia’s Jakarta Composite Index (JCI) fell by around 3% on Tuesday, dropping sharply by midday before closing the afternoon session at 6,382.5, AzerNEWS reports, citing foreign media.
At the same time, the Indonesian rupiah weakened to a record low of around 17,754 against the U.S. dollar, as concerns over external economic conditions and continued foreign capital outflows weighed on investor sentiment.
Analysts said the decline extended negative momentum following the removal of several Indonesian stocks from the Morgan Stanley Capital International (MSCI) index. The weaker rupiah further intensified selling pressure, as foreign investors moved to reduce exposure to local assets, according to reports from local media.
An additional factor often highlighted by market observers is that currency depreciation and index exclusions tend to reinforce each other: a weaker rupiah reduces foreign returns, while index downgrades can trigger automatic fund rebalancing, amplifying short-term volatility in emerging markets like Indonesia.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!