Nomura Upgrades Indonesia Stocks on Valuations, Growth Policy

Nomura Holdings Inc. has raised its recommendation on Indonesian stocks to overweight, citing attractive valuations and a domestic policy that’s supportive of growth.

“The market has been a significant underperformer,” and the central bank’s interest rate-cut cycle augurs well for domestic stocks, Chetan Seth, a strategist at Nomura, wrote in a report dated Tuesday. “Market concerns earlier in the year around Bank Indonesia independence, fiscal credibility, policy uncertainty and slow fiscal disbursement should gradually start to ease.”