IHSG slides as regional markets weaken

Jakarta The Jakarta Composite Index (IHSG) ended lower on Tuesday tracking the weakness in regional Asian stock markets.

The index of the Indonesian Stock Exchange (BEI) slid 118.4 points, or 1.89 percent, to reach 6,140.17, while the index of the 45 most liquid stocks (LQ45) shed 21.07 points, or 2.13 percent, to touch 966.88.

“The market is awaiting the outcome of the Fed meeting. The release of higher-than-expected FDI in the fourth quarter should be a positive catalyst for the index. After all, the government’s policy to extend restrictions on the movement of people and a spike in COVID-19 caseload potentially gave negative sentiment to the market,” Bina Artha Sekuritas analyst Nafan Aji said in Jakarta on Tuesday.

On the other hand, US President Joe Biden’s foreign policy, which stands more firmly against China, has made the market worried about its impact on trade relations between the two countries, he added.

“The domestic COVID-19 caseload, which hit a record of one million, has also sent a negative sentiment to the market,” he noted.

Shortly after opening lower on Tuesday, the IHSG remained in the red until the close of trade.

Stocks in all sectors recorded a correction, with the infrastructure sector deepening its slide by minus 2.9 percent, followed by the industrial sector and the property and real estate sector at minus 2.52 percent and minus 2.29 percent, respectively.

Friday’s trade posted net foreign buys of Rp346.65 billion.

A total of 1,465,888 transactions were recorded during the day, with 19.69 billion shares, worth Rp17.6 trillion, changing hands. Meanwhile, 94 shares rose, 395 shares fell, and 138 shares remained unchanged.

In the Asian regional markets, the Nikkei Index weakened 276.11 points, or 0.96 percent, to 28,546.18, the Hang Seng index shed 767.75 points, or 2.55 percent, to reach 29,391.26, and the Straits Times index fell 28.13, or 0.95 percent, to touch 2,945.52.

Source: Antara News