The Jakarta Composite Index slid as much as 5%, the biggest intraday slump since Sept. 10, 2020, to trigger the suspension. PT DCI Indonesia and PT Barito Renewables Energy were the biggest point drags, with the former down by a 20% limit.
There’s concern about consumer companies and weak sales going into the Eid holiday, “with many locals cutting down on discretionary spending,” said Nigel Peh, a portfolio manager at Timefolio Asset Management. Softer household spending and deflation figures are also weighing on market sentiment, he said.
Tuesday’s selloff accelerated the downturn in Indonesian stocks, cementing their position as some of the world’s worst performers this year. A stronger dollar and the escalating trade tensions have sparked an investor exodus. All eyes are now on Bank Indonesia’s rate decision on Wednesday, as investors await a potential intervention to stabilize the currency and boost growth.