Southeast Asian markets: Indonesia falls over three percent after elections; foreigners exit

Indonesian stocks slumped on Thursday, with foreign investors exiting risky assets after parliamentary election results signalled possible formation of a weak government that will have limited ability to push for reforms needed to boost investments in the Southeast Asia's largest economy.
Initial results showed the main opposition Indonesian Democratic Party-Struggle (PDI-P) failed to win enough votes to nominate popular Jakarta governor Joko "Jokowi" Widodo for the powerful presidency. Jakarta Composite Index lost 3.2 percent to close at 4,765.73, its lowest since March 27, after it gained 4.6 percent in the 10 straight sessions through Tuesday following the announcement of Jakowi's candidacy.
The index posted its worst performance in a day since August 27, with the day's trading volume at 1.5 times of the average daily volume in the last 30 days as investors booked profits after shares rose on hope for Jakowi's party to win convincingly. Foreign investors sold a net $128.61 million worth of share, reversing the trend after the region's third best performer with an 11.5 percent return so far this year saw a net inflow of $1.81 billion since March 14.
The fall was across the board led by market heavyweights. Indonesia's biggest auto distributor PT Astra International fell 6.2 percent, while Bank Mandiri and Bank Rakyat Indonesia lost 5.9 percent and 7.4 percent, respectively. Analysts said a larger-than-expected coalition by PDI-P could lead to a possible formation of a weak government with limited ability to push through necessary reforms and policies ahead.
They also expect profit-taking in sectors such as infrastructure, property and banks, which have gained sharply in the lead up to the parliamentary elections. The Indonesian rupiah, the best performing Asian currency so far this year, also fell 0.4 percent as of 0800 GMT as foreign and local banks took profits after the poll results.
Other Southeast Asian markets were range bound as positive sentiment on the minutes of the Federal Reserve's latest policy meeting was offset by an unexpected fall in Chinese exports in March. Thailand closed 0.6 percent firmer, the Philippines ended 0.8 percent up, and Malaysia edged up 0.2 percent. Bangkok saw a foreign inflow of $25.68 million, Manila witnessed $26.31 million, and Malaysia enjoyed a net $24.94 million offshore buying. Singapore and Vietnam were down 0.2 percent and 0.3 percent, respectively.