Indonesia's key index posted its biggest one-day percentage drop in nearly six months on Thursday due to concerns about the ability of the incoming government to enforce reforms, while Thai benchmark hit an over two-week closing low after data showed weak consumer confidence. Jakarta's composite index finished down 2.7 percent at 5,000.80. Foreign selling hit large caps such as Astra International, Telkom Indonesia and Bank Central Asia.
Sentiment was hit after the ruling coalition, led by president-elect Joko Widodo's party, lost the parliament head election to the opposition, led by losing presidential candidate Prabowo Subianto's party, brokers said. Jakarta-based Reza Priyambada, head of research Woori Korindo Securities Indonesia said the political concern came on top of a negative trading in Asian market.
"Investors are questioning whether Joko Widodo can run an effective government if his programs have to be brought to such a tough opposition in parliament," Priyambada said. In Bangkok, investors cashed in on recent gainers such as Advanced Info Service and Siam Commercial Bank, sending the key SET index 1.1 percent lower at 1,569.73, the lowest since September 16.
Consumer confidence in Thailand dropped in September for the first time since the military coup in May, a university survey showed, adding to evidence that authorities have not yet been able to get an economic recovery on track. Stocks in Singapore, Malaysia and the Philippines ended down, in line with Asian peers after a slew of weak global manufacturing data. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent.
Comments
Comments are closed.