Indonesian Stock Rally to Ease After Asia’s Best Gain
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Indonesia’s stocks rally may falter as slowing purchases by foreign investors signal gains in Asia’s best-performing market may be limited, according to PT Bahana TCW Investment Management.
The Jakarta Composite Index surged 42 percent this year as foreigners bought shares to benefit from the rupiah’s appreciation and higher interest rates than those in the developed world. This year’s advance, the biggest among Asia’s 10 biggest markets, drove valuations to 31 times reported earnings, twice the MSCI Emerging Market Index’s 14.9 multiple, making it the most expensive in the region.