Indonesia exchange traded funds reflect a diverse and robust economy, and technical indicators reveal that the funds have positive momentum behind them.
The iShares MSCI Indonesia (NYSEArca: EIDO) is up 19.6% over the past year. Market Vectors Indonesia Index ETF (NYSEArca: IDX) has gained 17.3% over the last year.
Both funds have formed a significant technical event as they have broken out of a wedge pattern to the upside, reports David Gillie for The Street. Both ETFs are now trading above their 200-day moving averages and are holding.
Additionally, EIDO and IDX are showing a positive Moving Average Convergence, or MACD – a trend-following momentum indicator that represents the relationship between the exponential moving averages between two different periods. When the MACD rises above the signal line, it is considered a bullish signal.
In 2011, Indonesia’s GDP expanded 6.2% to $823 billion, which is larger than that of Sweden’s and Argentina’s, almost four times larger than Hong Kong’s and a just a little bit smaller than Australia’s
The Southeast Asian country is rich in natural resources, including oil, gas, bauxite, siler, tin, copper, gold coal, timber, rubber, rice, palm oil and coffee. The economy also produces garments, footwear, furniture, paper products and electronics, exporting to China, Japan, Malaysia, Singapore, South Korea and the U.S.
Market Vectors Indonesia Index ETF
For more information on Indonesia, visit our Indonesia category.
Max Chen contributed to this article.