Rupiah Gaining, Jakarta Index Down

Jakarta (Antara Bali) - Indonesia's benchmark stock index fell in the opening trade on Wednesday as the market players still are awaiting announcement about the US central bank's monetary stimulus.

The index of the Indonesian Stock Exchange opened 15.66 points or 0.35 percent lower at 4,501.96 points  with index of 45 most liquid stocks down 0.52 percent to 761.63 points.

The Fed was expected by the market to cut purchases of bonds to US$75 billion a month from US$85 billion at present.  
    
VP Research and Analysis of PT Valbury Asia Securities, Nico Omer Jonckheere said the market reaction would depend on the final decision of The Fed.

"The market would react positively if the decision is considered reasonable by the market," Nico said here on Wednesday
    
He said the Fed factor is dominant in creating market sentiment but positive internal factor is expected to soften the pressure on the BEI index  on Wednesday.

HD Capital's analyst Yuganur Wijanarko said technically, market players tend to take the selling position putting a brake on upward movement of the BEI index.

Yuganur said investors sold shares after as a number of stocks have been overbought. Regional markets such as  Hang Seng recorded a 0.23 percent fall in index to 23,126.07 points with Nikkei-225 index gaining 1.94 percent to 14,589.11,  and that of Straits Times rising 0.45 percent to 3,195.14 points.

Meanwhile, rupiah gained against the US dollar  in the first minutes of trading on Wednesday  as the Fed would not cut its monetary stimulus beyond the market expectation.

Rupiah traded at the level of 11,180 per US dollar  in interbank transaction or a slight gain  from 11,182 earlier. Foreign fund  has also begun to flow in to emerging market strengthening the local currencies , Ruly Nova, a financial market observer from Bank Himpunan Saudara said here on Wednesday.

Ruly said if the cut is larger than market expectation at US$10 billion , the market would react negatively. "Sharp fluctuations would hit the market again if the US central bank cut  bond purchases by US$20 billion," he cited
   
He said the government's efforts to reduce current account deficit would be positive. (*/DWA)