Rupiah Weakening, Jakarta Index Lower

Jakarta (Antara Bali) - The Jakarta composite share price index opened lower on Friday to follow the regional trend.

The index of the Indonesian Stock Exchange (BEI) fell 5.42 points or 0.13 percent to 4,206.80 points with index of 45 most liquid stocks down 0.25 percent to 698.47 points.

"Share prices in the majority of markets in Asia fell on  worries over the Fed tapering  and the US budget agreement,"  chief researcher of  Trust Securities Reza Priyambada  said.

Reza said the US budget agreement boosted US domestic consumption  and business resulting in improvement in that country's economy.

"The improvement gives room for the Fed to cut its financial stimulus  that investment in emerging markets including Indonesia would be less interesting," he said.

In addition rupiah has continued to weaken against the US dollar indicating net sales in the domestic market.

"It would be difficult for the BEI index to rise amid heavy selling," he predicted. (*/DWA)