Last Week’s Foreign Inflow of IDR3.2 Trillion
Last week, JCI rallied at 1.4% on the back of the net foreign buy of IDR3.2 trillion. Foreign investors posted the net buy for ten consecutive days, starting from 12/27/2018. We oversaw that foreign investors started to penetrate emerging markets, particularly Indonesia. It was underlined by the 10-year yield of the government bonds (SUN) settling at 8.095% on 04/01/2019 alluring investors seeking for higher yields than that of bond yields offered by other emerging economies. Thus, the backdrop resulted in the rally of SUN with 10-year tenor by 11.2 bps to 7.981%. Massive foreign net buy in Indonesia’s bond market caused substantial foreign inflows: a balanced investment between SUN markets and equity markets.
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