Jakarta Index Shrinks 3.55 Percent

Jakarta,MINA — The Jakarta composite index (IHSG) sank 3.55 percent on Tuesday on negative sentiments in the market, Antara News reported, citing analysts.

The index of the Jakarta Stock Exchange (JSE) closed 215.92 points lower at 5,861.24 points with the index of 45 most liquid stocks (LQ45) down 4.14 percent to 923.22 points.

“A number of factors, domestic and external, triggered the steep fall of IHSG,” senior analyst of CSA Research Institute Reza Priyambada said here on Monday.

The main external factor is the Turkish financial crisis on high current account deficit. The crisis , the impact of which hit emerging markets, triggered capital flight with investors seeking to invest their money in safe haven assets.

The domestic factor is negative reaction of the market players to an increase in the current account deficit of the country to US$8 billion or 3 percent of the country`s GDP in the second quarter of this year from US$5.7 billion or 2.2 percent of the GDP.

Meanwhile, Vice President of Research Department of Indosurya Bersinar Sekuritas, William Surya Wijaya, said data of two-wheeler sales which are expected to rise is a positive sentiment reducing the pressure on IHSG .

“Data of motorcycle sales could serve as a reference of economic activities in the country. Therefore, there is positive hope for IHSG ahead,” William said.

The frequency of share trade on Monday was 374,729 transactions with 8.935 billion shares worth Rp7.947 trillion changing hands. Gainers were much outnumbered by decliners by 52 to 366 with 88 shares flat.

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

Mi’raj Islamic News Agency (MINA)