"Although foreign funds went out the BEI index remains positive until now," he said here on Tuesday.
The BEI index was up 23.80 points or 0.62 percent to 3,889.97 at the close on Tuesday while the index of LQ45 also up 4.54 points or 0.67 percent to 687.51 points.
Ito said he did not worry about fluctuating global markets because domestic economy was still positive and could stand negative sentiment from abroad so that the market remains promising for investors.
He said the stable domestic economic conditions would support the index movement in the future.
He said although foreign traders conducted selloff it would not affect much on the index movement.
"The situation is not like in 2008 and therefore we need not worry about the foreign outflow but we must even be able to attract investors to our capital market," he said.
He believed the foreign net selling was not hot money. "It is not rare for hot money to go to shares. Fund managers also fear of losing in the short-term. If it did enter into shares the amount will be very limited," he said.
Ito said the foreign sell-off could even make domestic investors to enter and invest in the country`s capital market.
"With many foreign investors leaving domestic investors would understand market fluctuations better and take the opportunity to invest in the domestic capital market. Domestic investors have been smarter and would not easily follow foreign investors` steps," he said. (*)
Editor: Kunto Wibisono
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