Indonesian Stocks Slump in Late Trading as Banks Lead Retreatby
Indonesian stocks fell the most in four weeks, led by financial and consumer shares, with most of the declines occurring in the last few minutes of trading.
The Jakarta Composite Index dropped 2.5 percent to 4,446.46 at the close, erasing its gain for the month. PT Unilever Indonesia and PT Bank Central Asia were the biggest decliners on Monday, falling at least 4 percent, while PT Indofood Sukses Makmur tumbled the most since 2011. The MSCI Emerging Markets Index dropped 1 percent.
The benchmark Indonesian gauge is heading for its biggest annual loss since 2008 after falling 15 percent as the Federal Reserve draws closer to raising borrowing costs and a commodity rout hurts earnings at farms and plantations. The index trades at 25 times earnings, 23 percent above its five-year average.