- <a href="https://usglobalxpress.com/how-the-us-has-overtaken-chinas-investments-in-africa/” title=”How the US has overtaken China's investments in Africa”>African asset manager Ninety One is buying Indonesian stocks after a major selloff made valuations attractive.
- Indonesia’s stock market has fallen over 35% in U.S. dollar terms this year, making it the worst-performing globally.
- The downturn was accelerated by geopolitical risks and concerns raised by MSCI over investability, leading to foreign outflows.
- Ninety One’s contrarian move signals growing globalization among African investors seeking opportunities beyond their continent.
According to Bloomberg, Johannesburg-headquartered Ninety One, which manages approximately $29 billion in assets, has started buying Indonesian stocks after a sharp decline left valuations at levels the firm considers attractive
Indonesia’s benchmark Jakarta Composite Index has fallen more than 35% in U.S. dollar terms this year, making it the weakest-performing equity benchmark among the 92 stock indexes tracked by Bloomberg
DON’T MISS THIS:Egypt emerges Indonesia’s biggest African export market with $1.59 billion in 2025
The downturn accelerated during the recent Iran conflict as investors reduced exposure to riskier emerging markets
However, the market’s troubles began months earlier after MSCI Inc. warned in January that Indonesia could lose its emerging market status because of concerns over investability, including the limited supply of freely tradable shares in many listed companies
The warning triggered sustained foreign investor outflows and weighed heavily on market sentiment
Rather than following the crowd, Ninety One believes the selloff has created a buying opportunity, betting that the market’s decline has become disconnected from the long-term outlook of many Indonesian companies, Bloomberg reported
The move highlights the growing international reach of African asset managers, which are increasingly deploying capital well beyond the continent in search of undervalued opportunities
While global investors have largely retreated from Indonesia amid concerns over liquidity, governance and geopolitical uncertainty, Ninety One’s investment reflects a classic contrarian strategy—buying assets when sentiment is overwhelmingly negative in anticipation of a future recovery
DON’T MISS THIS:Indonesia, Nigeria and Ecuador on standby to replace Ghana as world’s second-largest cocoa producer
Indonesia remains Southeast Asia’s largest economy, with a population of more than 280 million people and abundant reserves of critical minerals such as nickel, making it a key player in global electric vehicle supply chains despite its recent market struggles
For African investors, the decision also highlights how large institutional fund managers are broadening their geographic exposure as they seek returns across emerging markets rather than concentrating solely on domestic or regional assets
Whether the gamble pays off will depend on Indonesia’s ability to restore investor confidence and address the concerns raised by MSCI
If the country’s market stabilises and foreign capital returns, Ninety One could benefit from buying into one of the cheapest major equity markets at a time when many global investors remain on the sidelines