Ecommerce stocks in Indonesia have become an important way for traders to get a feel for the local economy and stock prices.
These stocks have historically enjoyed high price appreciation rates due to high interest in the stock, so traders should be very wary of buying into any given stock.
The following stocks in the Indonesian stock market have been hit hard by the cyclical economic downturn and are currently trading in a bear market.
Indonesia stocks in 2018:EbayIndonesian stocks in 2017:Korean-based Korean e-commerce giant KIK Group had been listed on the Indonesian Stock Exchange for nearly a decade before it suffered a massive setback in 2019, when it filed for bankruptcy protection.
Since then, KIK shares have struggled in 2018.
As a result, KSK shares have fallen by around 30% since the start of the year.
As of July 2018, KK shares had dropped by more than 15% from their all-time high of 9,400,873,719.
Kik has been struggling to keep its stock price afloat in the face of the economic downturn in Indonesia, and has fallen from over $10 a share in 2018 to $3.80 a share as of August 2019.
This is due to low interest rates, but the company has also been losing money due to an increasing amount of bad debt.KIK has seen its stock market value plummet from more than $10.7 billion in 2018, when KIK acquired the assets of rival online marketplace Rakuten, to $4.3 billion in 2019.
The collapse in the Korean ecommerce company was also a major factor behind the collapse in stock prices of other foreign companies in Indonesia.
The largest loss suffered by these companies in 2018 was from German-based retail retailer Lotte.
Lotte’s market value dropped by over 60% from its peak of $3 billion at the start in 2018 up until August 2019, according to data from data firm Technomic.
The Indonesian stock markets are a good place to look for stocks in a cyclical downturn, but do keep in mind that stocks in these markets are not necessarily guaranteed to perform as well as they would in a good economic cycle.
If you invest in stocks in an unfavorable economic environment, the results could be worse than they were last year.