Investors flee from Indonesia, Southeast Asia Market Drop

Investors flee from Indonesia, Southeast Asia Market Drop

 Southeast Asian markets suffered heavy month in November: Bangkok paralyzed by the protests, the cyclone devastated the central Philippines, and Indonesian investors to pull out of the program cuts in anticipation of bond purchases by the United States (U.S.).

Philippine stock exchange recorded the worst performance in Asia with the largest declines in the world, which is 7.2% with one trading day left this month. Rupiah is the currency with the greatest depreciation in Asia with a decrease of 5.2% against the U.S. dollar
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Massive stock sale shows how the upheaval in emerging markets after recent years greatly benefited from the rapid economic growth and foreign capital inflows from the U.S. and other countries. Deterioration that occurred this month in contrast to the United States record market shares increase in line with the visible signs of economic recovery.

Philippines experienced a gradual decline. The death toll from Typhoon Haiyan still growing and catastrophic damage from the disaster more clearly displayed. J.P. Morgan Chase this week cut its 2013 growth forecast for the Philippines from 7.1% to 6.9%. However, the company does not expect the long-term effects of these projections.

While in Thailand, stock price index fell 4.8% month-to-date while the baht currency was still slumped amid widespread anti-government protests in Bangkok demanding the resignation of Prime Minister Yingluck Shinawatra.
"Clearly there is a good chance that the government [Thailand] should resign. The question is whether the next step to be taken, "said Mark Mobius, executive chairman of Templeton Emerging Markets Group, which manages more than $ 50 billion in funds in a number of markets including Thailand. However, "the Thai market has always recovered. The basic structure of society is very strong. "Mobius says his position against Thailand will not change.

Indonesia is grappling with deteriorating investor sentiment following the current account deficit is seen to make Indonesia more vulnerable to outflows when the U.S. central bank started to cut the bond-purchase program worth $ 85 billion per month, which seems to take place in early 2014.

 Along with the increase in interest rates and a decline in foreign capital flows from the U.S., Indonesia seems to be much more debt in order to keep the deficit.
After experiencing a moderate recovery in October, foreign funds from equities Indonesia in November reached $ 122.6 million, according to EPFR the data together with the amount recorded Thailand and the Philippines combined. Efforts to shore up the government's liquidity by issuing dollar-denominated debt to domestic buyers encouraging endless. The Ministry of Finance plans to raise $ 450 million from the auction, but only reap $ 190 million.

In other Southeast Asian countries, the stock price index in Singapore and Malaysia market only decreased slightly. The only thing that recorded a rise in the stock exchange only Vietnam: in November, the index rose 2.2%, and nearly 23% year-to-date. (WSJ)