PRESSURE ON RESEARCHERS MOUNTS
Indonesia hails stock rating reverse by JPMorgan
Singapore — JPMorgan Chase has upgraded its assessment of the Indonesian stock market, reversing an earlier bearish call that prompted Jakarta to stop doing business with the US bank. The bank’s analysts raised their "tactical" view of Indonesian equities one level to neutral in a report on Monday, saying volatility in emerging market bonds following Donald Trump’s US election victory in November should now subside. The upgrade came two weeks after Indonesia’s government cut business ties with JPMorgan, citing a two-notch equities downgrade by the bank in November. "Our tactical downgrade two months ago was driven by the risk of Indonesia underperforming the Asia Pacific ex Japan and [emerging market] indices as investors derisked," analysts led by Adrian Mowat said. "Redemption and bond volatility risks have now played out, in our view." Indonesia welcomed JPMorgan’s new assessment. The neutral recommendation was more in line with fundamentals, Co-ordinating Minister for Economic A...
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