CSPI drops due to negative external factors

However, there was still a great chance the index would regain strength because foreign players were expected to return to the domestic market soon.
Jakarta, Oct 21 (ANTARA) - The Indonesia Stock Exchange (IDX)`s Composite Stock Price Index (CSPI) on Friday dropped to 3.600 due to external negative factors that had continued to affect the market.

The IDX index fell 0.70 percent or 25.287 points to 3597.489 points and 45 leading stocks (LQ-45) index dropped 5.674 points or 0.88 percent to 635.602.

PT Makinta Securities` stock market analyst Harry Kurniawan said the index continued to weaken due to negative external factors that were still working.

The sell-offs were expected to continue until the market`s close on Friday afternoon so that the index points could move away from the 3600 level, Harry said.

However, there was still a great chance the index would regain strength because foreign players were expected to return to the domestic market soon.

Foreign market players would invest their funds in the stock market and money market and enliven the two markets, he said.

Harry added that uncertainties in the European debt crisis would be the main factor driving foreign funds to return to the domestic market.

Foreign market players still considered Indonesia as an attractive market that can provide relatively high profits for them.

According to Harry, the foreign players had actually already entered the market but their buying actions had somewhat decreased because they had been focusing their attention on the G20 Summit meeting in France recently.

The G20 summit was expected to generate a positive sentiment that would enable the index to regain some strength and remain at the 3600 level, Harry said.

Besides, the EU leaders must be able to take a positive decision to help the debt crisis in Europe, because the absence of an agreement between EU leaders would slow down the debt crisis in Greece, Harry said.(*)

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