Sovereign wealth fund Danantara Indonesia has been buying up shares in firms it thought were attractive, its chief investment officer said on Thursday, adding that several companies still possess good fundamentals, including some state-controlled ones.
Pandu Sjahrir made the comments at a press briefing following a massive stock market selloff triggered by MSCI’s warning last Friday that it could demote Indonesian equities to “standalone” market status.
He said Danantara was buying shares it thought were attractive and would continue to do so “as long as the prices are good” and they have strong potential. “We are always profit-oriented. We see that from the risk-reward perspective, it’s looking good now,” Pandu added.
He did not provide details.
Indonesia’s main stock index plunged on Friday and Monday after the MSCI warning, but has since rebounded, gaining over 1% at 0300 GMT Thursday.
Reuters
