real-time news and commentary for investors
Monday, Oct 21
Citi: Indonesia not yet a buy
- Don't buy the dip in Indonesia where the iShares Indonesia ETF (EIDO -0.8%) and the Market Vectors Indonesia ETF (IDX -0.8%) are each off about 12% YTD, says Citi Research. A hike in fuel prices, higher wages, and weaker currency should continue to weigh on corporate earnings (couldn't a weaker currency help domestic earnings? Isn't that Japan's plan?).
- Citi expects earnings growth of 3% this year and 10% in 2014, less than consensus of 9% and 15%, respectively. Though dour on the broader market, Citi does expect Telekomunikasi Indonesia (TLK -1.5%) to "slightly beat" estimates.
- Related ETF: IDXJ.