Can you guess it? Ok one more Hint: It is the largest island country in the world by the number of islands, with more than fourteen thousand islands.
Here's the chart of Indonesian market:
Jakarta Stock Exchange Composite Index
What's even more interesting: Foreign investors have been net buyers of Indonesian stocks for the past three weeks especially at a time when they have been selling aggressively elsewhere. Also, the currency, the rupiah is up 2% in dollar terms this year. Here's the chart of the ETF -The iShares MSCI Indonesia ETF (EIDO)- that tracks Jakarta market
Few Bullish arguments:
Indonesia’s exports of value added goods to China constitute less than 2% of its GDP.
Bank Indonesia cut interest rates in January for the first time in a year, with the hint of more easing.
The inflation has dropped back sharply in recent month
Indonesian market is a long-time favorite destination for Japanese investors. With Bank of Japan now adopting Negative rates, more money is expected to flood Indonesian market
The post is purely for informational purpose only.