We've updated our Privacy and Cookies Policy
We've made some important changes to our Privacy and Cookies Policy and we want you to know what this means for you and your data.
Indonesia gets JP Morgan share upgrade
US investment bank JP Morgan Chase has upgraded its view of the Indonesian stock market, partially reversing a previous downgrade that prompted an angry reaction from the government.
The bank uprated Indonesian shares one notch to "neutral".
Emerging-market volatility in the wake of Donald Trump's US election win had now subsided, it said.
In November last year, the bank took its assessment down two levels from "overweight" to "underweight".
In response, the Indonesian government stopped doing business with JP Morgan.
In the month after the US presidential election, funds had sold large amounts of emerging-market countries' shares and bonds, bank researchers said in a note to clients.
"Our tactical downgrade two months ago was driven by the risk of Indonesia underperforming the Asia Pacific ex-Japan," they said.
"Bond volatility risks have now played out, in our view."
However, it said there were still concerns about further volatility, hence the neutral rating.
Indonesian Finance Minister Sri Mulyani said the upgrade was "good", but made no further comment.
Top Stories
More to explore
Most read
Content is not available