The index of the Indonesian Stock Exchange (BEI dropped 9.88 points to 6,091.25 points with the index of 45 most liquid stocks (LQ45) down 0.37 percent to 967.57 points.
Senior analyst of CSA Research Institute Reza Priyambada said part of the market players took advantage of an increase in share price earlier for profit keeping the IHSG from climbing.
"The profit taking by some foreign investors pushed the IHSG to the negative territory," Reza said, adding, however, the IHSG would not fall too deep, he said.
Based on data at BEI, there was a foreign net sell of Rp105.43 billion in Tuesday`s trade.
"Rising value of rupiah against the U.S. dollar was a positive sentiment keeping the IHSG from shrinking lower," he said.
Vice President of Research Department of Indosurya Bersinar Sekuritas, William Surya Wijaya said the IHSG still has room for regaining strength in line with the country`s stable economic fundamental.
"With the rupiah appreciation against the U.S. dollar the potential is bigger for the IHSG to regain strength," William said.
Meanwhile trade frequency is recorded at 399,556 times with 9.113 billion shares valued at Rp7.865 trillion changing hand. Decliners outnumbered gainers by 215 to 168 shares with 131 shares flat.
Regional markets such as Nikkei, Hang Seng and Straits Times recorded an increase in index.
Meanwhile, rupiah regain some of its lost value to close at the level of 14,433 from the previous level of 14,463 per dollar.
Chief Market Strategist of FXTM, Hussein Sayed said the sentiment of Indonesia economy improved with the highest growth since 2013.
"The growth could strengthen optimism about the prospect of Indonesian economic growth," Hussein said.
However, there are still external risks with the global trade tension, expected increase in the fund rate of the U.S. Central Bank, that could block rupiah appreciation.
"Escalation of political tension between China and the United States could weaken demand in export market and rise in the fund rate could speed up capital outflow," he said.
Reporting by Zubi Mahrofi
Editing by A Saragih, Yoseph Hariyadi
Reporter: Antara
Editor: Andi Abdussalam
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