IHSG Closes Lower, Rupiah Loses More Value

Jakarta, (ANTARA News) – The Jakarta composite index (IHSG) closed 0.57 percent lower on Tuesday on strong negative external sentiment, analysts said, Antara News reported.

The index of the Indonesian Stock Exchange declines 33.43 points to 5,825.65 points with index of the 45 most liquid stock down 0.89 percent to 910.65 points.

Analyst of ABinaartha Sekuritas M Nafan Aji said the negative sentiment related mainly to plan of the U.S. The Fed to raise its fund rate two more times this year.

The condition was worse with the escalation of trade war between the United States and other major economies mainly China.

“The external factors gave negative effects on IHSG today,” Nafan said.

Domestically, the country`s larger trade deficit in May than in April also contributed to weakening IHSG, he said.

There were 403,884 transactions in Tuesday`s trade with 13.1 billion shares worth Rp7.06 trillion changing hands. Decliners outnumbered gainers by 267 against 134 shares with 100 shares remaining flat.

Regional markets including Nikkei and Straits Times recorded gain index with Hang Seng recording a decline.

The weakenng rupiah

Meanwhile, the Indonesian currency rupiah lost more value againts the U.S. dollar closing at the level of 14,179 from earlier level of 14,159 per U.S. dollar earlier.

Money market analyst of Bank Mandiri Rully Arya Wisnubroto said the rupiah depreciation was still attributable more to external factors related to the U.S. – China trade war.

In addition, there was no domestic sentiment significant to counter the negative external factors, Rully said.

The market players are still awaiting whether Bank Indonesia will again raise its benchmark interest rate, BI 7-Days Reverse Repo Rate or not.

“The Central Bank is expected to make an important decision in its monthly meeting of board of governor. (T//RS5/RS1)

Mi’raj Islamic News Agency *MINA)