(The Jakarta Post) The Jakarta Composite Index (JCI) closed lower on Wednesday, while other stock markets in the region went up.
The JCI weakened by 0.34 percent to 4,332.51, while the index of the 45 most liquid stocks (LQ45) was down by 3.68 points or 0.50 percent to 728.93.
“The JCI at the Indonesian Stock Exchange [IDX] weakened even though in the morning it was moving up. The JCI's weakening was, among other things, sparked by the rupiah exchange rate, which was under pressure,” said First Asia Capital analyst David Sutyanto as reported by Antara newa agency.
According to David, the rupiah's weakening against the US dollar was met by negative sentiments from market players, since they feared it would affect the performance of companies on the IDX.
On the other hand, uncertainty about the US Federal Reserve’s policy on its interest rate added to these worries, David said.
The head of research at Universal Broker Indonesia, Satrio Utomo, said that Bank Indonesia's (BI) revision to its economic growth predictions for 2016 (from 5.3-5.7 percent to 5.2-5.6 percent) also contributed to the JCI's decline.
In Wednesday’s trading, the Indonesia Stock Exchange (IDX) recorded 211,180 transactions. The total number of shares traded reached 3.73 billion, worth Rp 2.94 trillion. A total of 131 shares moved up, while 145 shares moved down and 92 shares remained stagnant.
Meanwhile in regional markets, Hang Seng index strengthened by 511.43 points (2.38 percent) to 21,966.66, Nikkei index moved up by 145.12 points (0.81 percent) to 18,171.60, and Straits Times index strengthened by 26.80 points (0.94 percent) to 2,868.74. (bbn)
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