SINGAPORE, April 10 Indonesian shares fell 3
percent on Thursday after the main opposition party failed to
win enough votes in parliamentary elections to nominate hugely
popular Jakarta governor Joko Widodo for the presidency without
the help of other parties.
The Jakarta stock exchange sharply underperformed
MSCI's broadest index of Asia-Pacific shares outside Japan
, which was 0.3 percent higher.
Popularly known as "Jokowi", the governor of Jakarta had
been regarded as clear favourite to win when the country votes
for a new president in three months time.
The prospect had helped lift both the Indonesian currency
and shares, but early counting after Wednesday's parliamentary
vote suggested that his Indonesian Democratic Party-Struggle
will have to cut a deal with other parties to clear a required
threshhold in order to contest the July poll.
CIMB said the result so far may extend the presidential
elections to two rounds and prolong the political uncertainty in
Southeast Asia's largest economy until the fourth quarter of
"We view this as a disappointment as the rally prior to the
election suggested that more people were betting on subsiding
political uncertainty. We expect the rally to pause and the
market to see some profit-taking," CIMB said.
It added that sectors perceived to benefit from Jokowi's
potential policies -- infrastructure, healthcare and housing --
may see more downside for now.
CIMB's top defensive picks are toll road operator Jasa Marga
, state gas utility firm Perusahaan Gas Negara
and telecommunication services provider Telekomunikasi
(Reporting by Eveline Danubrata; Editing by Simon