"The Jakarta composite index was closed down following sell-off actions by investors. Indeed the index was up in the morning but later it again entered into a negative area following worries over China`s economic slowdown," analyst Purwoko Sartono saJakarta (ANTARA News) - Sell-off actions are still continuing to give pressure on the Indonesian composite index which was closed down 10.59 points.
The Indonesian composite index was down 10.59 points or 0.24 percent to 4,418.87 while the index of 45 blue chips dropped 4.47 points or 0.65 percent to 719.58.
"The Jakarta composite index was closed down following sell-off actions by investors. Indeed the index was up in the morning but later it again entered into a negative area following worries over China`s economic slowdown," Panin Sekuritas analyst Purwoko Sartono said here on Tuesday.
Due to a credit crunch inter-bank lending rates in China have soared, he said.
On the other hand, Purwoko said, investors had taken an advantage of the increasing index to conduct selling again (sell on strength).
He predicted the index would still easily change with a tendency to decline at between 4,340 and 4,435 points tomorrow.
Research Head of Trust Securities Reza Priyambada meanwhile said the Jakarta index had indeed weakened again on Tuesday but he saw the pressure tended to be limited.
"Shares that have been saturated have held the index to drop further," he said.
He said selling pressures would still continue as no strong positive sentiments have emerged to raise the index.
Transactions at the Jakarta Stock Exchange on Tuesday were recorded at 188,965 times involving 3.594 shares worth Rp5.601 trillion.
A total of 137 shares were up while 133 were down and 100 were unmoved.(*)
Editor: Heru Purwanto
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