The index of the Indonesian Stock Exchange (BEI) fell 34.34 points or 0.75 percent to 4,534.31 points with the index of 45 most liquid stocks down 1.15 percent to 750.12 points.
"Expectation of cut in financial stimulus by The Fed remains a potential drag on the upward movement of stocks in Asian markets," chief researcher of Trust Securities Reza Priyambada said.
The expectation was stronger with the declining trend in the US unemployment rate, Reza said here on Monday.
The market players, however, have mixed sentiments as some other US data such as consumption data declined, he said.
In addition, the US bond yields are rising with the expectation that The Fed would cut the stimulus, he added.
"The BEI index is expected to hover around 4,555--4,687 points in Monday`s trade," he predicted.
Regional markets such as Hang Seng recorded a 0.16 percent fall in index to 22,482.03 points with Nikkei-225 index down 0.34 percent to 13,603.72 points and that of Straits Times gaining 0.06 percent to 3,199.31 points.
Meanwhile, the Indonesian currency rupiah lost 50 points in the first minuet of trading on Monday on positive US economic data, analysts said.
The currency opened at 10,430 per US dollar in inter-bank transactions from 10,380 earlier.
Reza Priyambada said improved US unemployment and inflation data convinced the market players that The Fed would cut its financial stimulus next month.
"The condition brought on a fall in the value of the currencies of developing countries including rupiah," he said.
Expectation of a widening in the country`s current account deficit drove the market players into selling their rupiah especially with the surge in the yield of 10-year sovereign bond.
"Rupiah is expected to fluctuate around 10,385--10,440 per US dollar in Monday` trade," he said.
Samuel Sekuritas` economist Lana Soelistianingsih said the country`s balance of payments still had a deficit of US$2.5 billion in the second quarter of this year though declining from US$6.6 billion in the previous quarter.
"The balance of payment deficit was attributable to widening current account deficit from US$5.8 billion in the first quarter to US$9.8 billion in the second quarter of this year," Lana said.
She predicted the national currency is expected to weaken to 10,400--Rp10,450 per dollar at the start of this week.
Editor: Suryanto
Copyright © ANTARA 2013
