Jakarta Index And Rupiah Down

Jakarta, 30/9 (Antara) - Indonesia`s benchmark stock index fell in Monday`s opening trade on negative global sentiment, analysts said. The index of the Indonesian Stock Exchange (BEI) opened at 4,385.51 points , down 38.21 points or 0.86 percent from last week`s close. The index of 45 most liquid stocks also dropped 1.32 percent to the level of 729.22 points. "The majority markets in Asia opened lower this morning. The market players are worried that the US Senate and Congress failed to reach a compromise on state budget and the US debt ceiling," Samuel Sekuritas` analyst Benedictus Agung said. The US government is under pressure to increase the debt ceiling to allow it to seek more debts to finance the government bills, but the Congress which is controlled by the Republicans opposes the move. Benedictus said Indonesia`s Exchange Traded Fund (ETF) at the US stock exchange also weakened 2.6 percent last weekend. However, "window dressing" in the third quarter is expected to prevent further weakening of the BEI index, he said. Head of Research of Valbury Asia Securities Alfiansyah said investors also doubted that the government could redress the country`s trade balance and current account which are still in the red . The market attention this week will be drawn to Indonesia`s economic data for August yet to be announced by the government. Speculations about the data could add to MOUNTING concern in the market that Indonesia`s imports would rise further like in July, Alfiansyah said. "BEI index movements would be mixed . External factors could bring about negative sentiments and the economic data to be released this week could shore up the BEI index," he said. Regional markets such as Hang Seng fell 1.3 percent in index to 22,904.59 points and Nikkei-225 index shrinking 2.16 percent to 14,441.49 points and that of Straits Times down 0.81 percent to 3,184.28 points. Meanwhile, the country`s currency, rupiah, fell again in value against the US dollar on growing demand for dollar from local companies to repay foreign debts. Rupiah traded at 11,400 per dollar in inter-bank transactions weakening from the level of 11,330 last weekend. "Speculations about local companies needing big amount of dollar to repay foreign debts by the end of this month and growing need for imports shored up the US currency at the expense of rupiah," Trust Securities chief researcher Reza Priyambada said. In addition, statement by a number of US central bank leaders that the monetary stimulus would start to taper off in October, he said. Bank Indonesia, however, is expected to protect the currency from diving too deep.