IHSG opens lower on Thursday amid global economic uncertainty

IHSG opens lower on Thursday amid global economic uncertainty

Illustration - Brokers discussed the movement of the IHSG at the Jakarta Stock Exchange. (ANTARA PHOTO/Yudhi Mahatma/wdy/suharto)

Jakarta (ANTARA) - The Jakarta composite share price index (IHSG) opened lower on Thursday over investors' concern regarding global economic uncertainty.

The index of the Indonesian Stock Exchange (BEI) plunged 22.39 points, or 0.37 percent, to 6,033.22, while the index of the 45 most liquid stocks dropped 6.35 points, or 0.67 percent, to 935.38.

"The global economic uncertainty that may lead to Indonesian companies failing to repay debts, coupled with the downfall of the external stock exchanges, has prompted investors to release their shares, thereby applying pressure on the IHSG," Valbury Sekuritas Chief Researcher Alfiansyah noted in Jakarta on Thursday.

Global uncertainty has promoted the government to call on companies nationwide to remain vigilant to avert the higher risk of default owing to an economic slowdown in the midst of a global crisis, he noted.

"The government is expected to continue to monitor state-owned companies to prevent default after the rating agency Moody's stated many companies in the Asia-Pacific region, including Indonesia, ran the risk of default," he stated.

The global crisis must make companies change their assumptions in order to make profit, he emphasized.

In the meantime, the Nikkei index dropped 471.35 points, or 2.16 percent, to 21,307,25; the Hang Seng index plunged 214.07 points, or 0.82 percent, to 25,828.61; and Strait Times index decreased 25.75 points, or 0.83 percent, to 3,077.70.

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