"IHSG saw a decline this morning because a number of investors were concerned over the Fed's statement that nothing could offset the negative impact of the fiscal cliff," an analyst Purwoko Sartono said,
Jakarta (ANTARA News) - The composite stock price index (IHSG) of the Indonesian stock exchange (BEI) dropped 8.89 points in Thursday morning trade amid investor worries about the US fiscal cliff.

"IHSG saw a decline this morning because a number of investors were concerned over the Fed's statement that nothing could offset the negative impact of the fiscal cliff," Panin Security analyst Purwoko Sartono said here on Thursday.

IHSG dropped 8.89 points, or 0.21 percent, to 4,308. 38 points and LQ45 fell 2.27 points, or 0.31 percent, to 737.56 points.

"Moreover, today`s stock movement was still influenced by uncertainties surrounding the Greek bailout, although European policymakers have finally seemed to agree on a deal," he stated.

Sartono said BEI was expected to remain within a range of 4,290-4,335 points Thursday.

He also recommended some stocks, such as Bank Saudara (SDRA), Ciputra Surya (CTRS), Gudang Garam (GGRM), Wijaya Karya (WIKA) and Erajaya Swasembada (ERAA).

Meanwhile, Samuel Security analyst Yualdo Yudoprawiro stated that reports about decreasing unemployment and rising consumer confidence in the United States - both of which are leading indicators of the economic condition of a country - generated positive sentiments in the regional stock markets.

"IHSG is predicted to rise today due to the surge in regional stocks and also because of positive sentiments generated by a statement issued by the Fitch Ratings agency, which has retained Indonesian loan rating at BBB- (triple B minus) level on grounds of a stable outlook for the country," he explained.

"Fitch also stated that Indonesia could maintain its strong economic growth. Besides, the country attracts more investments than other nations with the same level of loan rating," Yudoprawiro pointed out.

He said banking, cement and automotive stocks were expected to outperform others today.

Hang Seng rose 93.13 points, or 0.43 percent, to 21,617.49 points. Nikkei-225 increased by 102.65 points, or 1.11 percent, to 9,325.17. Straits Times went up 17.24 points, or 0.58 percent, to 2,977.34 points. (*)

Editor: Heru Purwanto
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