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Indonesian Stocks Hit Circuit Breaker as Global Sell-Off Deepens

Indonesian Stocks Hit Circuit Breaker Amid Spike in Virus Cases

(Bloomberg) --

Indonesian equities dropped, triggering a trading halt for the fifth time in two weeks, as investors fretted over the impact of the coronavirus outbreak on the global economy.

The Jakarta Composite Index fell 4.9% to close at 3,989.517 on Monday, its lowest level since August 2013. The index earlier breached the 5% circuit breaker to trigger a 30-minute trading halt.

Indonesian stocks and currency have tumbled to multi-year lows as a global sell-off sparked by the virus pandemic prompts investors to flee high-yield emerging markets assets seen as risky. The world’s fourth-mos populous nation has seen a spike in infections and fatalities in recent weeks, prompting authorities to declare an emergency in capital Jakarta. Circuit breakers were also triggered in Thailand and India after a weekend surge in the coronavirus death toll worldwide.

Indonesian Stocks Hit Circuit Breaker as Global Sell-Off Deepens

“The decline today was more a result of global factors, with U.S. futures falling,” Jemmy Paul, president director of PT Sucorinvest Asset Management, said by phone. “I expect the negative sentiment to take charge of the situation over the next few days, also because state firms have not conducted their share buybacks as announced.”

Foreign investors have sold a combined $6.7 billion of Indonesian equities and bonds so far this year, driving the rupiah to its weakest level since the Asian financial crisis. The currency is the worst-performer in Asia this year with a decline of 16%.

©2020 Bloomberg L.P.