Jakarta Index Continues on the Downtrend on Global Sentiment

Jakarta, MINA — Unfavorable global condition keeps the Jakarta composite index (IHSG ) on the downtrend on Friday, Antara News
reported.

The index of the Indonesian Stock Exchange opened 18.02 points or 0.31 percent lower at 5.738,59 with index of the 45 most liquid stock down 0.5 percent to 899.85 points.

“The Indonesian stock market is still hit by the sentiment from the global crisis,” chief researcher of the Valbury Sekuritas, Alfiansyah said here on Friday.

The global sentiments came in succession beginning with the U.S. Chinese trade war , collapse of the Turkish currency , and oil price hike that weakened rupiah, Alfiansyah said.

“The falling value of rupiah puts greater burden on the IHSG to remain in the positive territory,” he said.

The government, however, has taken a series of steps to prop up rupiah such as import restrictions and the use of biodiesel (B20) to reduce oil fuel imports. he said.

Capital market observer Aria Santoso said investors are watching the performance of listed companies after the falling value of rupiah.

“The sharp appreciation of the U.S. dollar is feared to affect the performance of listed companies,” Aria said.

The indices of major share markets in Asia such as Nikkei Hang Seng Strait Times also fell into red territory on Friday opening. Reporting by Zubi Mahrofi. (T/RS5/RS1)

Mi’raj Islamic News Ageny (MINA)