It has been a huge shaky season for finance sector components in 2016. The year started on a gloomy note as decline in oil prices, low user activity, Brexit-associated issues and slump in China critically disturbed the financials. However, the sector indicated flexibility and as the year advanced, these issues progressively eased. Similarly, the sanguinity surrounding the Fed rate increased along with the U.S. Presidential-election results applauded the investors.
Particularly, amidst a handful of financial stocks registered on the Dow Jones Industrial Average (DJIA) index, The Goldman Sachs Group, Inc. GS and JPMorgan Chase & Co. were the best faring stocks of 2016. Specially, Goldman rallied almost 33%, while JPMorgan increased nearly 31% in 2016. On the other hand, the DJIA enhanced more than 15%.
The Indonesian government has shelved JPMorgan Chase & Co. (NYSE:JPM) as a major bond dealer following the U.S. bank’s research arm ranked an “underweight” position in Indonesian stocks. According to Reuters.
Following they did a complete assessment, they stated no need to use JPMorgan’s services as a major (bond) dealer and a perception bank, according to Suahasil Nazara, the chief of the ministry’s fiscal policy office, informed Reuters.
A 2006 government ruling stated that a perception bank is one nominated by the finance minister to get transfers of state revenue not associated to imports, consisting of tax, onshore excise and non-tax revenue. Nazara stated that the penalty on JPMorgan was previously in effect.
The finance ministry’s Nazara stated that the bank’s investigation “did not make sense” as it recommended a “neutral” ranking for Brazil, which is superior to Indonesia, notwithstanding what he said was a more steady political condition in the Southeast Asian nation.