Though Indonesia recorded a trade surplus of US$187 million in December 2014, the country still suffers from a trade deficit of US$1.89 billion for the whole year of 2014. Nevertheless, it is an improvement especially when compared to the 2013 trade deficit of US$4.07 billion.
Head of the Central Statistics Agency (BPS) Suryamin noted that Indonesia recorded a deficit of US$13.13 billion from oil and gas trade, but trade of non oil and gas contributed a surplus of US$11.24 billion (2013: surplus US$8.55 billion). In December 2014, surplus from non oil and gas trade was US$1.22 billion.
BPS also reported 0.24% deflation for January 2015. This should reflect the low inflation for this year to be around 5% (from 8.3% in 2014), then Bank Indonesia (central bank) would lower its benchmark BI Rate (now 7.75%) to help boost the economic growth along with the improving trade balance.
This morning the composite index of the Indonesia Stock Exchange (IDX) gained 0.34% to 5294 inline with regional markets. Markets in Asia extended a rally on Wall Street as traders cheered early indications Greece may strike an agreement with its creditors, as well as rising oil prices, Reuters reported.
Adaro Energy, Bumi Resources, Bumi Serpong Damai gained 1%. Citra Marga jumped further 4.2%, Matahari Putra Prima climbed 4.04%, and Waskita Karya surged 3.38%.
2014 Stock Review
Foreign investors booked net buy of Rp42.6 trillion in 2014, compared to net sell of Rp20.65 trillion in 2013. Trading in stocks, by both foreign and domestic investors, however, declined 4.5% to Rp1,453 trillion. For the last decade, foreign investors only booked net sell of Rp15.4 trillion for local stocks in 2005 and in 2013.
While trading in government bonds jumped 51% to Rp1,877 trillion in 2014, trading in corporate bonds dropped 63.5% to Rp167.67 trillion. Outstanding government bonds reached Rp1,210 trillion while outstanding corporate bonds reached Rp223.46 trillion.
In 2014, the composite index of the Indonesia Stock Exchange (IDX) gained 22.29%. Property-real estate-building construction stocks jumped 55.76%, finance (+35.41%), infrastructure-utilities-
Total market capitalization by end of 2014 was Rp5,228 trillion, led by finance (Rp1,313 trillion) of which banking accounted for Rp1,222 trillion. Consumer goods industry at 2nd place, has market capitalization of Rp1,015 trillion, followed by infrastructure-utilities-
While agriculture and mining have market capitalization of Rp161.78 trillion and Rp255.1 trillion respectively. Plantation stocks have market capitalization of Rp142.2 trillion and coal stocks’ market capitalization was Rp148.1 trillion.
Bank Central Asia was the largest stock at IDX with market capitalization of Rp320.36 trillion, followed by HM Sampoerna Rp300.89 trillion, Astra International Rp300.59 trillion, Telekomunikasi Indonesia Rp288.79 trillion, Bank Rakyat Indonesia Rp284.52 trillion, Bank Mandiri Rp248.9 trillion, and Unilever Indonesia Rp246.45 trillion.
Investors mostly traded in Bank Rakyat Indonesia during 2014 with total value trading of Rp91.87 trillion or 6.32% of total market trading. Other mostly traded stocks were Telekomunikasi Indonesia Rp75.84 trillion, Bank Mandiri Rp72.64 trillion, Astra International Rp71.07 trillion, and Bank Central Asia Rp51.77 trillion.
DISCLAIMER: AUTHOR HAS NO POSITION IN STOCKS MENTIONED
By Yohannes Obor
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