Political upheaval is driving a split in Southeast Asia’s financial landscape, as investors bet that the worst may finally be over in Thailand but only just getting started in Indonesia.
Foreign investors have pulled $653 million from Indonesia’s stock market this month, the worst period of selling since April as violent protests and the abrupt replacement of the finance minister rock the country. Thailand’s long beleaguered stock market looks set to reap the benefit: Aberdeen Investments, Gama Asset Management and Valverde Investment Partners now say the market stands out as the hot pick among the two, and a prolonged exodus of foreign funds has slowed to a trickle.