BANGKOK: Indonesian stocks ended at a more than one-week low on Friday, with heavy foreign outflow after its parliament approved legislation to end direct elections to regional posts, while other Southeast Asian markets ended mixed.
The Jakarta Composite Index ended 1.3 percent weaker
at its lowest close since Sept. 16 on concerns over political
stability after president-elect Joko Widodo's Indonesian
Democratic Party failed to secure the political support needed
to scuttle the legislation.
The index, the worst performer on the week, touched a
seven-week low earlier in the day after Indonesia's parliament
approved a measure ending direct elections for governors and
mayors, a move president-elect Joko Widodo said was a "big step
back" for the country.
"It reflects that the opposition coalition is very solid,
which could be a problem if the new government wants to pass a
new economic policy," said Arief Budiman, an analyst with
Ciptadana Securities in Jakarta.
However, he said the market can take some comfort in the
fact that the government does not need to pass fuel subsidy
policy through the parliament.
The Asian Development Bank's downward revision of the
country's 2014 economic growth to 5.3 percent from 5.7 percent
also weighed on sentiment and the bourse suffered a net $118.13
million foreign outflow.
Financial stocks led the fall, with Bank Mandiri
and Bank Rakyat Indonesia losing 4.5 percent and 3.9
percent, respectively.
Malaysia fell 0.1 percent, the Philippines
slipped 0.5 percent, and Vietnam's benchmark VN Index
surrendered its early gains to end slightly weaker at 0.02
percent.
Singapore closed nearly steady at 0.04 percent
gain.
Thailand, the only gainer on the week, closed 0.5
percent firmer despite the central bank's warning that the
country's pivotal exports will not grow at all this year.
However, the Bank of Thailand (BOT) maintained that the economy
can still grow 1.5 percent in 2014 assuming the government can
jack up spending in the last quarter.
SOUTHEAST ASIAN STOCK MARKETS
Change on day
Market Current Prev Close Pct Move
Singapore 3292.21 3290.99 +0.04
Kuala Lumpur 1840.50 1843.11 -0.14
Bangkok 1600.16 1591.99 +0.51
Jakarta 5132.56 5201.38 -1.32
Manila 7261.30 7294.21 -0.45
Ho Chi Minh 604.98 605.10 -0.02
Change on year
Market Current End 2013 Pct Move
Singapore 3292.21 3167.43 +3.94
Kuala Lumpur 1840.50 1866.96 -1.42
Bangkok 1600.16 1298.71 +23.21
Jakarta 5132.56 4274.18 +20.06
Manila 7261.30 5889.83 +23.29
Ho Chi Minh 604.98 504.63 +19.89
(1 US dollar = 12,020.0000 rupiah)
- Reuters
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