Jakarta Index Down Slightly

Jakarta, Sept 17 (Antara) - The Jakarta composite share price index fell slightly in the opening trade on Tuesday on profit taking. The index of the Indonesian Stock Exchange (BEI) opened 0.09 percent lower at 4,518.26 points with index of 45 most liquid stocks down 0.13 percent to 765.29 points. "A number of investors sold shares for profit after significant increase in share prices earlier weakening the index," Trust Securities` chief researcher Reza Priyambada said here on Tuesday. Given the positive sentiments in the market, the BEI index should have continued to climb, Reza said. Among the positive sentiments is market expectation that the US central bank would take a moderate decision on its monetary stimulus that the impact would not cause market instability, he said. In addition, while shares are being sold, foreign investors also bought shares, he said. Other factors bringing about positive sentiment are lower yield on 10-year state bonds and rising value of rupiah on non deliverable forward market . Rupiah traded at the level of 11,225 per US dollar in interbank transaction in the first minute of trading on Tuesday gaining from earlier level of 11,420 Regional market such Hang Seng recorded a 0.26 percent fall in index to 23,192.99 points with Nikkei-225 index up 0.08 percent to 14,416.30 points and that of Straits Times gaining 0.02 percent to 3,180.27 points. Rupiah gained on Tuesday morning on transaction in the market of NDF (non deliverable forward) market, Reza said. In addition speculations have spread widely that reduction of monetary stimulus by The Fed would not be significant that gave a pressure on the US dollar, he said. The market players also still responded positively to Bank Indonesia`s recent decision raising its benchmark interest rate from 7 percent to 7.25 percent. Some market players, however are still worried by the economic slowdown. Monex Investindo Futures` chief researcher Ariston Tjendra said the US dollar tended to weaken against the majority of the global currencies ahead of the meeting of The Fed. The Fed is predicted to cut its monthly purchases of bonds by US$10 billion. "But risky assets could be rendered a big blow if The Fed cuts it monetary stimulus more than estimate," he said. The dollar weakening is also attributed to withdrawal of Lawrence Summers from candidacy to replace the present chairman of The Fed.