Foreign Investors’ Intense Appetite for the Banking Sector
Although JCI was exposed to massive foreign outflows of IDR928 billion last week, it only slightly moderated at 1.49 points or -0.02%. Foreign outflows occurred when the data of China Manufacturing Purchasing Manager Index (PMI), released on Thursday, 02/28/2019, dipped by 2.2% y-y to 49.2. The slump in PMI heightened foreign investors’ fears of the global economic growth. That halted inflows occurred in the first 3 days of last week and triggered outflows within last week’s two last days. The miscellaneous sector (particularly, Astra International (ASII’s stock) contributing 76%) was the targeted net sell of nearly IDR 522 billion, as ASII released its 4Q18 earnings, posting profit margins at 7%: the lowest since the last 3 years. For the banking sector, foreign investors still posted the net buy of nearly IDR 739 billion. Bank Indonesia’s commitment to keeping rupiah stability in check mounted foreign investors’ confidence in the banking sector: JCI’s most biggest sector. JCI was still in bullish favor because the banking sector still posted the foreign net buy, albeit the foreign outflows of virtually IDR928 billion.

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