Jakarta (Antara Bali) - The Jakarta composite index (JCI) opened lower on Monday on oil price fall in the world market despite gain recorded by rupiah against the U.S. dollar.
The index of the Indonesian Stock Exchange (BEI) fell 16 points or 0.36 percent to 4,452.64 points with index of 45 most liquid stocks down 0.59 percent to 766.32 points.
Vice President of Research and Analysis of Valbury Asia Securities Nico Omer Jonckheere said that investors were still worried by continued fall in the oil price amid protracted global economic slowdown.
"The decision of the U.S. Central Bank (The Fed) had ended uncertainty over its fund rate , but the positive sentiment was not enough to offset the negative sentiment brought about by the oil price fall," Nico said.
If the oil price fall continued the slump that hit the global stock market would also continue this week, he added.
The market players are also waiting for the announcement of European economic data.
If the data were not as expected the impact would add to worsening the global economic condition, he said.
Meanwhile, share trading this week was only three days to be followed with long holidays .
Asjaya Indosurya Securities analyst William Surya Wijaya said the JCI is in the phase of consolidation after the increase in the U.S. fund rate.
"Early this week the JCI was under pressure but there was potential to increase ahead of the year end," William said.
Regional markets such as Hang Seng recorded gain , but Nikkei and Straits posted a decline in index
Meanwhile, in inter bank transaction on Monday morning , rupiah gained 54 points trading at the level of 13,863 per U.S. dollar from 13,917 per dollar earlier.
The market reaction to the rise in the Fed fund rate was calm ans the decision was already predicted,Mandiri Sekuritas economist Leo Rinaldy said.
He said despite the increase in the Fed fund rate, Indonesia was still one of the countries offering more attractive interest rate.
Last week, Bank Indonesia decided to maintain its benchmark interest rater (BI rate) at 7.5 percent.
However, further gain by rupiah could be checked, even the trend could be reversed with possible continued fall in the commodity price as a result of China's economic slow down.
PT Platon Niaga Berjangka analyst Lukman Leong said thed euphoria over the decision of the Fed that ended a long condition of uncertainty was still a factor shoring up rupiah.
"The decision to raise the Fed fund rate gave certainty to market players in risky markets ," he said.
He also agreed that the trend in the world oil market could prompt investors to invest in safe assets such U.S. government bonds .
"Such situation could push up the U.S. dollar over the majority of the global currencies including rupiah," he added. (WDY)
