Ninety One Buys Indonesian Stocks After 35% Slump as $29 Billion Manager Turns Contrarian
Updated
Updated · Business Insider Africa · Jul 8
Ninety One Buys Indonesian Stocks After 35% Slump as $29 Billion Manager Turns Contrarian
2 articles · Updated · Business Insider Africa · Jul 8
Summary
Johannesburg-based Ninety One has started buying Indonesian equities, arguing a 35%-plus dollar selloff has pushed valuations to attractive levels.
Indonesia’s Jakarta Composite is the weakest among 92 Bloomberg-tracked indexes this year after foreign investors fled on geopolitical risk and liquidity concerns.
MSCI intensified the pressure in January by warning Indonesia could lose emerging-market status because many listed companies have too few freely tradable shares.
The bet marks a rare case of African capital moving aggressively outside the continent, with Ninety One seeking recovery potential in a market global investors have largely abandoned.
Whether the trade pays off now hinges on Indonesia restoring investor confidence and easing the investability concerns that drove the rout.