Foreign investors intensified selling in local stocks on Wednesday (Oct 11) as they booked net sell of Rp800.74 billion, bringing year to date net sell to Rp16.03 trillion. Trend of capital outflow is evident. Foreign investors have reduced their investment portfolios both in stocks market and government’s treasury and bonds, reflected in less participation in recent bond auctions. Based on the settlement result on Thursday last week (Oct 5), foreign investors’ portion fell by Rp1.16 trillion while total bond auction reached Rp17.85 trillion.
The drop in bond yields and depreciation of the local currencies (rupiah) would confirm the said capital outflows by foreign investors. They have booked net sell of Rp11.42 trillion in treasury and bonds during first week of this month.
