Jakarta Composite Index Continues to Decline

Jakarta, MINA –The Jakarta composite index (IHSG) closed lower again on Tuesday still on strong negative external factors, Antara News reported, citing analysts.

The index of the Indonesian Stock Exchange (BEI) shrank 34.77 points or 0.57 percent to 6,076.58 points and the index of the 45 most liquid stocks fell 0.58 percent to 969.30 points.

Analyst of CSA Research Institute, Reza Priyambada said sentiment of global uncertainty is still a negative factor shadowing the market in developing economies including BEI.

“The external effects on regional index are quite strong. That is the impact of uncertainty sentiments such as trade war,” Reza said.

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He said the IHSG fell on investors action that tended to hold transaction waiting for the result of the Fed meeting on 18-19 December.

Director of PT Investa Saran Mandiri Hans Kwee said external sentiment has triggered capital outflows from developing countries such as Indonesia resulting in growing pressure on investment instrument in stock market.

“Trade war has not shown positive change. Uncertainty is still prevailing,” he said.

Trade on Tuesday was recorded with 427,994 transactions and 10.65 billion shares valued at Rp8.59 trillion changing hands. Gainers were outnumbered by decliners with 172 shares against 235 shares with 113 shares unchanged.

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Regional markets such as Nikkei and Strait Times recorded a decline in index but Hang Seng recorded an increase. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)