(Bloomberg) -- Indonesia’s benchmark stock index fell 10% from its year’s high, entering a technical correction brought on by slowing economic growth and regional uncertainties after Donald Trump’s win in the US election.
The Jakarta Composite Index closed 1.2% to its lowest since Aug. 5, with PT Bank Mandiri Persero and PT Alamtri Resources Indonesia among the biggest point laggards on the gauge. The index hit its all-time high on Sept. 19.
Foreign investors sold a net $52.9 million of the country’s equities on Thursday, according to exchange data compiled by Bloomberg. It was the 16th straight day of selling, as a stronger dollar dented the appeal of emerging-market assets.
The market’s souring sentiment mirrors a slew of data that points to economic challenges that face the country’s new president who was sworn in last month. It’s also a reflection that no country in the region is immune to investor concerns that have risen from Trump’s proposed policies, including higher tariffs. The rupiah has fallen about 1% against the dollar this month.
“The recent pullback on JCI was driven by foreign fund outflow and concerns on currency pressure,” said JPMorgan analyst Henry Wibowo. “Indonesia is negatively impacted from the stronger” dollar.
READ: Foreigners Flee Indonesian Stocks as Strong Dollar Dents Appeal
Indonesia’s third quarter gross domestic product rose at the slowest pace in a year, according to official data released earlier this month. Growth in third-quarter profit among Indonesian companies also was softer, according to a report by CGS International.
The country, under newly inaugurated President Prabowo Subianto, has been preparing measures to boost purchasing power, as a spate of factory closures and job cuts weakened consumption and slowed growth.
The equity market could eventually rebound by the end of the year given that some stocks with strong fundamentals are below their fair value now, said Rully Arya Wisnubroto, an analyst with Mirae Asset Sekuritas Indonesia in Jakarta.
(Updates with index closing price.)