Jakarta (Antara Bali) - The Jakarta composite share price index fell again in the morning trade on Wednesday on uncertainty over the decision of the US central bank on monetary stimulus.
The index of the Indonesian Stock Exchange (BEI) opened 4,390 points or 1.57 percent lower at 4,390.24 points.
The index of 45 most liquid stocks also fell 1.92 percent to the level of 734.79 points.
Uncertainty still surrounding The Fed's program of monetary stimulus and the debate on US debt ceiling to last until Oct 1 provided negative sentiment in the market, chief researcher of MNC Securities Edwin Sebayang said.
Domestic sentiment also tended to be negative with the Central Statistics Agency (BPS) saying the government's low cost car program could trigger a rise in inflation.
"Potential rise in car sales will mean an increase in consumption of subsidized oil fuels, or against the government policy of seeking to cut spending on energy subsidies," Edwin said.
Chief researcher of PT Trust Securities, Reza Priyambada, said speculation arising from long process of debate on US debt ceiling prompted investors to restrain from buying shares even chose to walk out of share market.
The impact of the situation would weaken rupiah which already lost much of its value against the US dollar over the past several months.
"Rupiah weakening would have its impact on current account position which is already in the red," Reza said. (*/DWA)
