Indonesian stocks fell, with the benchmark index dropping 2.9% to a three-month low amid speculation of regulatory fines for major listed companies. Shares of PT Dian Swastatika Sentosa and PT Barito Renewables Energy dropped over 14% each, leading the decline. The energy sector underperformed the broader market.
The selloff stemmed from unconfirmed reports that the securities regulator is investigating coal and renewable-energy firms. Fines could reach hundreds of billions of rupiah. Investor sentiment was further weakened by the upcoming MSCI review and five consecutive weeks of foreign fund outflows.
The Jakarta Composite Index is down over 31% year-to-date, ranking as the world's worst-performing equity gauge. Traders noted the potential for an extended monitoring period for regulatory reforms.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing