Indonesian Stock Exchange Faces Aggressive Liquidity Squeeze Amid Capital Flight
What happened
The Indonesia Stock Exchange faced an aggressive broad-based liquidity squeeze at the start of the trading week. Premium large-cap equities under the LQ45 index shifted into severe consolidation channels. Market turnover contracted by 38.8%, falling from IDR 19.3 trillion to IDR 11.8 trillion. International institutional desks accelerated capital flight, registering a net foreign sell of IDR 510.1 billion.
From kontan.co.id
Why it matters
The market downturn impacted several key companies. Newly listed energy arm PT Adaro Andalan Indonesia collapsed by 3.13%, while PT Aneka Tambang dropped 2.99%. The market movements were observed across the composite list, including PT Indah Kiat Pulp & Paper.
The events are discussed within the context of market trends affecting company operations in Indonesia.
From kontan.co.id
Who's involved
- Darma HenwaIndonesian infrastructure company affected by market conditions.
- IndonesiaIsland country in Southeast Asia and Oceania experiencing market stress.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Darma HenwaSpeculative
The company might experience revenue impacts due to the broad liquidity squeeze on the Indonesian market.
Keep exploring
Part of
Market trends discussed for company operations in Indonesia.Also in this story
- WIKA, a company, is facing severe pressure within the Indonesian market.
- Market shifts demand organizational adaptation in Indonesia amidst global market pressures.
- Unilever gains market share in emerging markets and reports contributing over 60% of its revenue.