Indonesia market

Indonesia market: Indonesian stocks tumbled to the lowest valuations in 13 months, as foreign investors sold a net US$169m of shares, the biggest outflow since 21 Jun. The index wiped out this year’s gains and traded at 13x fwd P/E, the lowest level since June 2012. The sell off was likely spurred by the rupiah's decline , touching 10,500 per USD yday for the first time since 2009, after central bank data showed the current-account deficit widened to a record US$9.8b in 2Q13, from US$5.8 b qoq. Worse-than-estimated economic data this month exacerbated the declines. The economy grew less than 6% for the first time since 2010 in 2Q. Market watchers note, further declines in the rupiah may cause foreign-exchange losses for overseas investors and an unstable outlook for businesses that need to hedge currency risk.