Jakarta (Antara Bali) - The Jakarta composite index opened lower on Tuesday to follow the regional trend.
The index of the Indonesian Stock Exchange (BEI) fell 33.79 points or 0.65 percent to 5,186.20 points with index of 45 most liquid stocks down 0.95 percent to 889.72.
"Negative sentiment in the US market spread to the ASsian markets including BEI," Samuel Sekuritas' analyst Tiesha Narandha Putri said here.
Falling value of rupiah added to the pressure on the BEI index. Continued fall of the rupiah value could result in investors losing confidence in the country's economy, she added.
However, the government's pledge to increase the spending on infrastructure such as on transport sector after succeeding in cutting subsidy on oil fuel (BBM) is potential to give positive sentiment to the market, she said.
Head of Research of Valbury Asia Securities Alfiansyah said allocation of the BBM subsidy budget to infrastructure projects will help improve the confidence of investors that the government is determined to implement reform program.
"The government policy is expected to draw more foriegn capital into the country to prop up rupiah," he said.
However, if the government failed to carry out its infrastructure development program the impact would be bad , he said, adding failure could trigger capital flight
Regional markets such as Hang Seng, Nikkei and Straits Times recorded a decline in indices. (WDY)
Jakarta Index Opens Lower On Tuesday
Selasa, 6 Januari 2015 13:18 WIB