Indonesian Rupiah continue to weaken

Expect further weakness ahead for Indonesian exposed counters, as the Rupiah slumps to near its five-year low yesterday against the USD of 12,000, pressured by strong corporate dollar demand. Some analysts expects the rupiah to further extend its downtrend, noting that there is not much positive sentiment for the Rupiah for now, with the 12,150 low of Mar?09 and 12,600 low of 2008, seen as the next levels of support. The following counters derive a significant percentage of revenue from Indonesia: Lippo Malls Indonesia Retail Trust (100%), Jardine Cycle & Carriage (94%), Sinarmas Land (90%), Petra Foods (72%), Asia Enterprises (69%), Interra Resources (66%), First REIT (14%), NeraTel (11%). *Note that the list is by no means comprehensive and does not take into account net hedging effects. *The list excludes Indonesian plantation companies, which may be potential beneficiaries of a weaker rupiah, as CPO prices are denominated in USD, while plantation operations incur costs in rupiah.