The benchmark Jakarta Composite Index fell 0.64 percent on Thursday, shedding 27.20 points to close at 4,217.52 as Asia saw markets slide across the board on disappointing Japanese export data and Chinese manufacturing numbers.
Traders exchanged 5.16 billion shares worth Rp 2.94 trillion ($308 million) on Thursday on the Indonesia Stock Exchange.
Mining stocks led the decline, with the sector falling 2.5 percent on mixed industry news, including reports that the Indonesian government was seeking to raise its royalty rate on mining profits. Vale Indonesia, the nation’s biggest nickel producer, saw shares fall 0.8 percent to Rp 2,975.
Coal miner Bayan Resources plunged 10 percent on the day to close at Rp 11,600. Bumi Resources, the nation’s largest listed coal miner, shaved 2.3 percent off its share price to close at Rp 860.
After solid gains in Jakarta on Wednesday, the consumer goods sector slumped 2.0 percent on Thursday. Unilever Indonesia, Indonesia’s biggest producer of consumer goods, was down 3.8 percent to Rp 26,650. Cigarette maker Gudung Garam saw the previous day’s gains largely erased when it fell 1.4 percent to Rp 47,900.
The miscellaneous goods sector, which covers the automotive sector among others, lost 1.6 percent. Astra International, the nation’s largest automotive distributor, fell 2.0 percent to Rp 7,250.
Regionally, Asian stocks on Thursday fell from the highest level since May after Japanese exports dropped for a third month.
Japan’s exports declined 5.8 percent in August from a year earlier, the Finance Ministry reported on Thursday, and more weak manufacturing figures out of China added to concerns about the economic giant.
Shanghai led the losses, tumbling 2.08 percent, or 42.99 points, to 2,024.84, its lowest since February 2009, at the height of the global financial crisis. Tokyo fell 1.57 percent, or 145.23 points, at 9,086.98.
“We’re very concerned about the near-term outlook for the global economic picture,” Peter Elston, Singapore-based head of Asia-Pacific strategy at Aberdeen Asset Management, said in a Bloomberg TV interview from Hong Kong. “There’s some fairly significant weakness just around the corner. We’re fairly cautious.”
Global indices climbed on Wednesday, with Tokyo and Sydney hitting four-month highs, after the Japanese central bank said it would extend an asset-purchase scheme as it tries to jumpstart the domestic economy.
However, most of those advances were wiped out on Thursday after HSBC’s preliminary Purchasing Managers Index (PMI) said Chinese manufacturing activity contracted for an 11th straight month in September.
The survey adds to long-running worries about the world’s number-two economy, which has seen its key export sector pummeled by shrinking demand in the crucial European and US markets. The figures from China are closely watched as the country is a key driver of growth for much of the global economy.
The Indonesian rupiah strengthened 0.2 percent to 9,524 against the US dollar on Thursday, prices from local banks compiled by Bloomberg show.
JG, AFP, Bloomberg