However, tin and nickle-based stocks worth considering buying on rising prices of the two commodities in the world market."
Jakarta (ANTARA News) - Indonesia`s benchmark stock index fell 11.39 points in the opening trade on Monday morning to follow the regional trend.

"After a long Idul Fitri holidays the BEI index opened lower in a muted trade on declining trend of the regional markets," Samuel Sekuritas` analyst Benedictus Agung said here on Monday.

The index of the Indonesian Stock Exchange (BEI) fell 0.25 percent to 4,629.38 points with the index of 45 most liquid stocks down 0.37 percent to 772.04 points.

PT MNC Securities chief researcher Edwin Sebayang said high inflation, falling Gross Domestic Product and weakening local currency rupiah against the US dollar provided a negative sentiment in the market.

Edwin predicted the BEI index would close lower in the first trading day of this week saying the BEI index would technically hover around 4,600-4,679 points indicating less buying action.

"However, tin and nickle-based stocks worth considering buying on rising prices of the two commodities in the world market. Last weekend the price of nickle in the world market rose 2.87 percent and tin price increased 1.24 percent," he said.

Regional markets such as Hang Seng reported a 0.64 percent rise in index to 21,947.29 points, with Nikkei-225 index down 0.64 percent to 13,526.40 points and that of Straits Times gaining 0.01 percent to 3,230.37 points.

Meanwhile, the Indonesian currency rupiah gained against the US dollar on uncertain US policy on monetary stimulus.

Rupiah began trading on Monday at 10,275 per dollar gaining 5 points from 10,280 earlier.

Monex Investindo Futures` chief researcher Ariston Tjendra said uncertainty over the date The Fed is to cut the monetary stimulus had weakened dollar.

"Its is predicted that the US dollar would fall this week," Ariston said on Monday.

He said some of the world`s currencies such as euro. Australian dollar and yen also gained against the US dollar.

Samuel Sekuritas` economist Lana Soelistianingsih predicted the rupiah would still hover around the levels of 10,270-10,300 to the dollar.

Lana said rupiah trade on the domestic market is relatively stagnant on long Idul Fitri holidays, but trade abroad remained normal and was brisker.

She said rupiah movements will be partly determined by domestic factors such as inflation in August, which is expected to remain high on rising prices during the Idul Fitri festivities.

Normally deflation is recorded in October or November but this year the possibility is slim as planting season could be delayed on rain continuing to pour until, August, she said.
(Uu.H-ASG/F001)

Editor: Priyambodo RH
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