Jakarta Index Down Slightly On Thursday

Jakarta, Jan 9 (Antara) - The Jakarta composite index opened slightly lower on Thursday to follow the regional trend. The index of the Indonesian Stock Exchange (BEI) fell 0.63 points or 0.01 percent to 4,199.97 points with the index of 45 most liquid stocks down 0.02 percent to 698.82 points. "The BEI index fell on negative regional sentiment that followed correction in the US stock market last night," Samuel Sekuritas` analyst Benedictus Agung said. The correction of the US market was as a result of statements by a number of the Fed`s leaders saying that the Fed`s financial stimulus of bond buying program began to lose its contribution to the US economy. The Fed already decided to trim its massive bond buying program from US$85 billion to US$75 billion a month starting January, 2014. However, domestic sentiment is quite positive with expectation that Bank Indonesia would maintain its benchmark interest rate at 7.5 percent to follow the increase in trade surplus in November and foreign exchange reserve to US$99.4 billion. The foreign exchange reserves rose US$2.4 billion from US$97 billion end of November 2013. The reserves are enough to pay for imports in 5.5 months and service the government foreign debts or still well above the international adequacy standard, a team of technical analysts of Mandiri Sekuritas said. The BEI index, therefore, could still gain , the team said. Regional markets such as Hang Seng recorded a 0.16 percent fall in index to 22,958.94 points with Nikkei index down 1.34 percent to 15,905.96 points and that of Straits Times gaining 0.04 percent to 3,152.33 points.