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Foreign investors offload stocks as IDX Composite declines
With a 1.57 percent IDX Composite decline on Monday, foreign investors sold Rp 592.81 billion (US$37.81 million) worth of stocks.
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An employee takes a photo of screens displaying stock movements on July 4, 2023, at the Indonesian Stock Exchange in Jakarta. With a 1.57 percent IDX Composite decline on Monday, Oct. 24, 2023, foreign investors sold Rp 592.81 billion (US$37.81 million) worth of stocks. (Antara/Hafidz Mubarak A)
W
ith a 1.57 percent Indonesia Stock Exchange (IDX) Composite decline on Monday, foreign investors sold Rp 592.81 billion (US$37.81 million) worth of stocks.
The IDX Composite experienced a significant drop on Monday, closing at 6,741.96 and marking a 1.57 percent decline.
The IDX Composite’s lowest point during the day was 6,730.87. As many as 430 stocks declined, while 148 saw gains and 175 remained stable.
The total transaction value amounted to Rp 8.74 trillion, with foreign investors recording a net sale of Rp 592.81 billion across all markets. Specifically, Rp 590.5 billion was sold in the regular market, and Rp 1.86 billion was sold in the negotiation and cash markets.
According to RTI Business, PT Bank Central Asia (BCA) recorded a sell-off of Rp 115.0 billion, followed by PT Bank Rakyat Indonesia (BRI) with Rp 112.8 billion, PT Bank Mandiri with Rp 89.6 billion and PT Telkom Indonesia with Rp 74.6 billion.
Decline of Asian stock exchanges
According to Bloomberg Technoz, the decline in the IDX Composite is consistent with other major Asian stock exchanges, which are also at risk of weakening. The ongoing conflicts in the Middle East and the expectation of persistently high interest rates have prompted market participants to shift from risky assets to safer ones.
In other Asian markets, the Shanghai Composite (China), Hang Seng (Hong Kong), Topix (Japan), PSEI (Philippines), Straits Times (Singapore), Kospi (South Korea) and SETI (Thailand), declined by 0.96 percent, 0.72 percent, 0.42 percent, 0.7 percent, 0.27 percent, 0.46 percent and 1.66 percent, respectively.
Amid increasing market volatility, the VIX index, which reflects volatility on the Chicago Board Options Exchange, reached its highest level since March. Consequently, investors are seeking safe-haven assets, with gold being one of their choices. This has led to a significant increase in the price of gold.
Over the past week, gold prices rose by 2.55 percent on a point-to-point basis. In the previous week, the price surged by 5.43 percent. Therefore, over a two-week period, the price of gold has risen by a total of 8.12 percent.
