Jakarta Index And Rupiah Down To Follow Regional Trend

Jakarta, May 7 (Antara) - The Jakarta composite index (JCI) slipped 2.43 points in the opening trade on Wednesday to follow the regional trend. The index of the Indonesian Stock Exchange (BEI) opened 0.05 percent lower at 4,832.04 points with the index of 45 most liquid stocks down 0.04 percent to 815.04. "Asian markets opened lower with the absence of new positive sentiments," Samuel Sekuritas` analyst Tiesha Narandha Putri said. Tiesha said the price fall of US shares especially in the banking and technology sectors gave negative impact on Asian markets. However, an increase in metal prices in the world market could give bring about positive sentiments in the mining sector in the country, she added. A team of analysts from Mandiri Sekuritas said the market players are awaiting the decision of Bank Indonesia on its benchmark interest rate expected to be announced on Thursday. The market also is awaiting the result of the official recapitulation of votes from the recent legislative election expected to be announced on May 9. Regional markets such as Hang Seng recorded a 0.83 percent fall in index to 21,792.84 points, with Nikkei index shrinking 2.24 percent to 14,126.92 and that of Straits Times down 0.51 percent to 3,228.95 points. Meanwhile, rupiah in interbank transaction lost 5 basis points against the US dollar in the first minutes of trade on Wednesday. The currency traded at the level of 11,524 per US dollar weakening from the previous level of 11,519 per dollar. "The rupiah fall followed the slowdown of the country`s economy which grew only by 5.21 percent in the first quarter of this year as against 5.78 percent a year earlier," chief researcher of Trust Securties Reza Priyambada said. Most investors avoided holding risky assets after Chinese economic indicators such as manufacturing data release3d early this week fell below expectation, Reza said. He said the market optimism is to be tested this week, adding the Chinese government would release its trade and inflation data that would either reduce concern over economic slowdown or make it worse. However, depreciation of euro and British pound following improved US manufacturing data could bring about positive sentiment to boost Indonesian exports that would push rupiah to the positive area, he said. Monex Investindo Futures` analyst Zulfirman Basir said optimism ahead of the presidential election on July 9 would help shore up rupiah. Basir said the election is expected to be smooth that investors would not be worried about investment security.