Foreign investor selling spree to continue until year-end: Analysts

first_imgLooming risks from the unresolved COVID-19 pandemic have led investors to be more conservative, including by maintaining high levels of cash, he noted.Fears over the coronavirus outbreak’s economic impact rattled global stock markets, including that of Indonesia, in March and April as investors dumped risky assets and turned to safe-haven assets, such as gold and the United States dollar. The capital outflows weakened the rupiah’s value against the greenback.The Jakarta Composite Index (JCI), the IDX main gauge, has lost almost 17 percent of its value so far this year as it slipped 0.18 percent to 5,230 on Monday. It fell to its lowest point on March 24 to 3,937.63 due to the virus fear and since then, the index has gained around 32 percent, a rally analysts say was backed by domestic retail investors.According to the bourse’s data, foreign investors have made up 36 percent of the total value traded on the IDX, at Rp 470.1 trillion, so far this year while domestic investors made up 64 percent, Rp 828 trillion. On Monday alone, foreign investors made up only 19 percent of the total daily trading value, indicating that the trend of declining foreign trading in the IDX continues. In terms of stock value, foreign investors mostly cashed out from the retail, metal and mining sectors, as well as from the cement industry, Frederik said.“For the retail and cement sectors so far, it does not look like they will recover in the near future. Meanwhile, the mining sector’s [recovery] will depend on the global prices, especially nickel,” Frederik explained, adding that interest in those sectors was still present, but at relatively low prices.IDX data revealed that the property, real estate and construction sector was hit the hardest compared with others on the bourse as it fell 41.34 percent as of Monday, followed by miscellaneous industry (down 26.25 percent) and infrastructure, utilities and transportation (down 24.76 percent).Frederik warned that despite the gain in recent months, the index might experience another decline as long as the real economy had not recovered.Meanwhile, Bank Negara Indonesia (BNI) Sekuritas research head Kim Kwie Sjamsudin told the Post on Aug. 31 that the return of foreign capital would likely happen after the United States election in November concluded.“I expect foreign investors will be back to the local market at the end of 2020’s fourth quarter,” Kim said.Foreign ownership within the Indonesian capital market has gradually decreased over the years, as shown by Indonesian Central Securities Depository (KSEI) data on the growth of total assets listed in C-BEST, an electronic platform to store and complete securities transactions.Foreign investors’ assets accounted for 57.04 percent of the total assets in 2013 while domestic ownership stood at 42.96 percent, according to data presented by University of Indonesia stock market expert Budi Frensidy in a webinar on July 28.By last year, the foreign ownership fell to 44.29 percent and domestic ownership was at 55.71 percent. The nonresidents’ stake fell further to 41.45 percent as of June this year.Jasa Utama Capital analyst Chris Apriliony said on Aug. 31 that foreign participation in the bourse was certainly needed if market players wanted the index to rally, adding that a significant foreign capital outflow could weaken the rupiah, depending on whether foreign funds left the country or they merely transferred to other investment instruments, such as bonds.A document prepared by the Organization for Economic Cooperation and Development (OECD) in June 2020 states that the capital flow dynamics during the COVID-19 crisis appeared to be exceptional in regard to the scale and speed of the outflows, to the extent of exceeding the flows observed in previous crises, including the 2008 global financial crisis.“The Institute of International Finance [IIF] daily flows tracker estimates that around $103 billion were drawn from emerging market economies between mid-January and mid-May 2020, with equity inflows plummeting first, followed by debt flows,” the document reads.Topics : The Indonesian stock market is likely to endure a selling spree by foreign investors until year-end as the global economic and political situations remain unfavorable for the country’s assets amid the prolonged COVID-19 pandemic, analysts have said.Foreign investors at the Indonesia Stock Exchange (IDX) sold almost Rp 32 trillion (US$2.16 billion) of stocks more than they bought as of Monday. In comparison, the local bourse managed to book foreign net buys of Rp 49.19 trillion last year and Rp 50.75 trillion in net selling in 2018, IDX data shows.“The outlook has yet to become bullish because of the many [global uncertainties] that are not likely to be resolved in the near future,” securities company Artha Sekuritas Indonesia vice president Frederik Rasali told The Jakarta Post on Aug. 31.last_img read more

RHTY&SC MS cricket teams make donations to EBFA, Enterprise and Skeldon cricket clubs

first_imgTHE eight cricket teams of Guyana’s leading youth and sports organisation, the Rose Hall Town Youth and Sports Club MS continues to assist their counterparts from other cricket clubs under their personal development programme.The latest clubs to benefit are the Enterprise Busta Sports Club of East Coast Demerara andClinton Pestano presents donation to a representative of Enterprise CC.the Skeldon Community Centre Cricket Club.Both cricket clubs received three trophies and six medals each to assist them to organise a cricket tournament for teams in their respective areas with the main aim of promoting the Say No/Say Yes message to youths.The Club Secretary/CEO Hilbert Foster stated that the RHTY&SC is quite passionate about assisting others to achieve and enjoy the same success as it does. The RHTY&SC MS, despite all of its efforts and passion, would be unable to reach youths in all of Guyana and as such needs the assistance of its sister clubs to promote the Say No/Say Yes message.Under the highly successful campaign, the eight cricket teams encourage youths to Say NO to Drugs, Suicide, Crime, Alcohol and YES to Education, Life, Sports and Religion.The RHTY&SC, Foster noted, is the only sports club in Guyana that has a programme to assist fellow clubs and for this year alone, dozens of clubs and sportsmen/women have benefited from over $4M worth of trophies, medals and other items to assist them to fulfil their respective mandates.The club in April assisted 12 cricket clubs with over $1.5M worth of cricket balls, bats and stumps while a total of 62 schools, clubs, NGOs and churches have benefited from donations of trophies, medals and prizes.Additionally 22 young sportsmen and women have received individual donation of gear, footwear, educational materials and finance under the RHTY&SC MS ‘Dare to Dream’ and ‘We Care’ Programmes.Meanwhile the RHTY&SC also donated trophies, medals, hand towels and a $18 000 bicycle to the East Bank Football Association (EBFA) for the hosting of a football tournament for females on the East Bank of Demerara, vice-president Mark Papannah, who has direct responsibilities for the RHTY&SC, saidOutreach programme stated that the club has reached out to other clubs in seven of the ten regions in Guyana and would continue to do so in the future.Papannah disclosed that the RHTY&SC would be assisting over 20 cricket clubs with sports gear, especially balls, after the hosting of the Patron’s Cup in July. Balls would be distributed to clubs as part of a widespread effort to assist them to develop the cricketing skills of youths.Among the clubs expected to benefit are Bush Lot Rising Star, Blairmont, Police, Edinburgh, Tucber Park, Young Warriors, Courtland, Fyrish, Chesney, Whim, Young and Restless, Skeldon and Upper Corentyne.last_img read more

Moses Reveals Plans to Fight for Chelsea Career

first_imgVictor Moses has expressed his desire to stay at Chelsea while hoping to get a chance from new manager Antonio Conte.Since his move from Wigan in 2012, the winger boasts of 12 English Premier League starts with the Blues and spent the last three seasons on loan at Liverpool, Stoke and West Ham United.And the Nigeria international is motivated to give all it takes to impress manager Conte to avoid been shipped out of the team.“It’s a very big season for me, there is a new manager here,” Moses told EveningStandard.“I have to show my talent and make sure I work hard to get into his thoughts. I will keep working hard and see what happens after that. “We have a new manager and he knows what he wants from us. We are still getting used to the way he wants us to play, but it’s going to be good.”Moses was one of the few players that impressed in Chelsea’s defeat to Rapid Vienna in their first pre-season game.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegramlast_img read more