JCI’s Last-Week Further Rally of 1.0%
As the Fed is estimated to postpone any hikes in FFR, foreign inflows of IDR1.3 trillion flooded JCI after last 2-week’s foreign outflows of IDR1.8 trillion. The Fed’s pausing FFR hike button on for the remaining 2019 certainly arises investors’ insatiable appetite for investing their funds in emerging economies, e.g., Indonesia, offering higher return than its developed peers.
Another to the Fed’s dovish stance, the outcome of BI’s Board of Governors Meeting brought an air of expectancy among market participants. As BI holds 7DRR unchanged at 6.0% and maintains an accommodative macro prudential policy, foreign investors begin to consider Indonesia’s stocks to collect in 2019.
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