BEI INDEX FALLS ON BLUE CHIP SHARE LOSSES

Jakarta, June 16 (ANTARA) - The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Tuesday opened 2.22 percent lower, as investors released blue chip shares following losses in regional and world bourses.

The BEI index plunged 2.22 percent or 46.144 points to 2,023.237 points, and the LQ-45 index fell 2.53 percent or 10.213 points to 393.171.

Selloffs occurred lately following overnight plunge in U.S. markets which also affected the regional bourses, Ahmad Riyadi, a stock market analyst of PT Millenium Danatama Securities, said.

On Monday, Wall Street tumbled after bleaker-than-expected manufacturing data dimmed the outlook for an economic recovery. The Dow Jones industrial average fell 2.13 percent and the tech-laden Nasdaq composite index slid 2.28 percent.

The absence of positive sentiments in Indonesia also encouraged the release of rupiah and caused the Indonesian stocks to tumble, he said.

According to him, investors were focusing their attention on the implementation of the upcoming presidential elections to be held on July 8 this year.

If the presidential polls implementation was smooth and peaceful, it would give positive sentiments to the rupiah as foreign funds would enter the domestic market, he said.

Besides, the economic growth target which was set higher than this year would also boost foreign investors to put their money in the domestic market, he explained.

He believed the BEI index had a big chance to strengthen away from the level of 2,000 points.

Astra International shares plunged Rp800 to Rp22,900, Astra Agro Lestari shares tumbled Rp800 to Rp21,200, Bukit Asam shares went down Rp400 to Rp12,600, Bank BRI shares decreased Rp300 to Rp6,400, United Tractor shares lost Rp250 to Rp10,150, Telkom shares weakened Rp200 to Rp7.550, and Indosat shares were down Rp125 to Rp4,925.