We have a class of FII's who move from country to country, to boost the host country stock exchanges during election time, and take the index up irrespective of where it is, then cash out before the actual result comes out. We have been seeing the result of this trend in India of late and now have Indonesia going through a similar process. These investors are not there to see what benefits of a good governance would usher in or who eventually will rule.But, how quickly they can move in, raise the index , stock prices and cash out, leave with, some poor chap holding the baby which is usually a retailer.This scenario has been repeated many times world over. India and Indonesia will see the same effect, soon enough.
Indonesia’s rupiah rose to a 19-week high after foreign funds pumped money into local stocks as Jakarta Governor Joko Widodo announced he would run in July’s presidential election.
Overseas investors added $656 million to holdings of Indonesian equities, the most since May, on March 14 as the Indonesian Democratic Party of Struggle (PDI-P) said Widodo, known locally as Jokowi, would be its candidate. That helped push the Jakarta Composite index up 3.2 percent and into bull-market territory.
Indonesia’s rupiah rose to a 19-week high after foreign funds pumped money into local stocks as Jakarta Governor Joko Widodo announced he would run in July’s presidential election.
Overseas investors added $656 million to holdings of Indonesian equities, the most since May, on March 14 as the Indonesian Democratic Party of Struggle (PDI-P) said Widodo, known locally as Jokowi, would be its candidate. That helped push the Jakarta Composite index up 3.2 percent and into bull-market territory.