Foreign Funds Flow into JCI, Potential Sell in May Phenomenon Fades Away

The Composite Stock Price Index (JCI) has surpassed the 7,000 level, driven by a resurgence in foreign investor funds resulting in capital inflow. The JCI concluded trading on Friday (16/5) with a 0.94% rise to 7,106.52, as foreign investors recorded a net buy of Rp 528.85 billion in all markets. Over the past week, the JCI has increased by 2.60%, with foreign net buy flow totalling Rp 1.38 trillion from 9-16 May 2025. The return of foreign funds has been influenced by improved sentiments regarding the US-China trade war de-escalation, which has promoted fund flow towards riskier assets such as emerging markets. Erindra Krisnawan, Head of Equity Research at BRI Danareksa, emphasised Indonesia's appeal in comparison to other emerging markets. He cited positive projected Earnings per Share (EPS) growth and a favourable Price-to-Earnings (PE) ratio. Domestic factors such as improved sentiment, clarity on Danantara and state-owned banks' management, dividend distribution, share buybacks, potential Bank Indonesia (BI) interest rate cuts, and government fiscal spending have sustained positive sentiment in the market.

https://investasi.kontan.co.id/news/aliran-dana-asing-masuk-ke-ihsg-potensi-fenomena-sell-in-may-semakin-memudar 

Debt burden gets heavier, Moody's cuts US debt rating

Malaysia's economy grew by 4.4% in Q1-2025, below market expectations.Moody's has downgraded the United States credit rating to 'Aa1' from 'Aaa' due to increasing debt and high interest rates compared to other countries with similar ratings. The agency has stated that previous US administrations and Congress have not taken effective measures to address the ongoing trend of large fiscal deficits and rising interest costs. Despite this downgrade, Moody's has revised its outlook on the US to "stable" from "negative". Since taking office in 2025, President Donald Trump has expressed intentions to balance the US budget, aiming to reduce government funding costs through revenue-generating tariffs and spending cuts. The administration's focus on addressing rising government debt is a cause for concern, as it could potentially have a negative impact on the economy if left unaddressed.

https://internasional.kontan.co.id/news/beban-utang-makin-berat-moodys-gunting-peringkat-utang-as