Indonesian Stocks Sink to Three-Year Low After First Virus Death
Indonesian Stocks Sink to Three-Year Low After First Virus Death
(Bloomberg) --
Indonesia’s benchmark stock index tumbled to its lowest level in more than three years before paring losses as concerns mounted over the economic impact of the coronavirus with the authorities reporting the nation’s first death from the infection.
The Jakarta Composite Index fell as much as 2.1% to 5,112.319, the lowest intraday level since December 2016. It trimmed losses to close 1.3% lower. Lenders PT Bank Central Asia and PT Bank Mandiri and state-owned telecommunication firm PT Telekomunikasi Indonesia led the decline. The index, which entered a bear market on Monday, is down 18% this year.
“The first coronavirus-related death in Indonesia has triggered risk-off mood among some investors,” said Hariyanto Wijaya, head of research at PT Mirae Asset Sekuritas in Jakarta. “For them, it has become more difficult in projecting the impact and the period of coronavirus to Indonesian economy.”
A 53-year-old foreign national, who was admitted to a hospital in critical condition, died early on Wednesday, according to government spokesman Achmad Yurianto. The total number of people tested positive for the deadly virus stood at 27 with two patients already discharged, he said.
The sell-off in stocks renewed even after authorities introduced a slew of measures to stem the rout. The regulator has allowed companies to buy back stocks without the prior approval of shareholders, tightened rules for trading halt and banned short selling in shares.
Foreigners have pulled a net $507 million from equity funds since January and $2.3 billion from bonds, according to data compiled by Bloomberg.
To contact the reporters on this story: Harry Suhartono in Jakarta at hsuhartono@bloomberg.net;Tassia Sipahutar in Jakarta at ssipahutar@bloomberg.net
To contact the editor responsible for this story: Thomas Kutty Abraham at tabraham4@bloomberg.net
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