Market Outlook 2H 2019: The Return of Optimism

27 Jun 2019

JAKARTA, 26 June 2019 - Eastspring Investment Indonesia (“Eastspring Indonesia”), today held a halal bihalal event and market update to discuss the firm’s positive view of global and local markets.

Ari Pitojo, Chief Investment Officer of Eastspring Investments Indonesia, is optimistic about Indonesia’s capital markets, despite the movement of Indonesia Composite Index (IHSG) that has been down since the beginning of the year.

After a correction to around 5.800 level in May, IHSG strengthened slightly to 6.300 but has remained depressed due to global and domestic factors. These factors include foreign outflows resulting from risk-off global sentiment, concerns over a slowdown in China along with Yuan depreciation, re-adjustment of MSCI weightings, relatively high oil prices, trade balance deficit, as well as protests and demonstrations over the result of the presidential election.

“We believe that the Index rebound amidst political certainty since the election, and the S&P plan to increase Indonesia credit rating to ‘BBB’ will provide a positive sentiment to the Indonesia’s capital market in the future,” Mr Pitojo said

Mr Pitojo estimated foreign capital will flow back into Indonesia and provide positive sentiment for the stock market.

“Foreign capital flowing back to Indonesia and support for the Fed’s plan to decrease interest rates this year will provide opportunities for Bank Indonesia to decrease interest rates,” he added.

At the event, Alan T. Darmawan, Chief Executive Officer of Eastspring Investments Indonesia, said, “Eastspring is firmly committed to the Indonesian market, and always acts in the best interests of our customers. We continue to look at innovative products and distribution methods to better serve the needs of our retail and institutional customers.”

Over the next six months, Eastspring Indonesia plans to launch five new mutual fund products, two of these will be protected mutual funds products.

The Eastspring Investments Value Discovery Fund was recently awarded Best Mutual Fund 2019 from Investor-Infovesta magazine for the best equity fund over a three-year period with assets worth more than one trillion rupiah. On 29 March 2019, Eastspring Indonesia became the biggest investment manager in Indonesia managing more than 89.51 trillion rupiah in funds (based on OJK data).

Get in touch

For media information, email us at  media.id@eastspring.com