NewsHK
Emerging-market equity cycles rarely reverse as quickly as the one now unfolding in Indonesia.
Jakarta's stock market reached a five-year low just last month before crossing into bull-market territory, a turnaround credited to attractive valuations, swift regulatory action, and a return of foreign investors.
From five-year low to bull market The scale of the correction that preceded the recovery helps explain the speed of the reversal. Five-year lows typically signal that a market has priced in sustained pessimism.
When fresh buyers decide the market has overshot on the downside, the move back can be rapid. Indonesia is now a case study in that dynamic.
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