"Asian markets including BEI weakened this morning after correction recorded by the US stock exchanges last weekend," analyst Benedictus Agung said,
Jakart (ANTARA News) - Indonesia`s benchmark stock index fell in morning trade on Monday to follow the regional trend.

The index of the Indonesian Stock Exchange (BEI) opened 57.03 points or 1.24 percent lower at 4,526.80 with index of 45 most liquid stocks down 13.33 point or 1.72 percent to 760.60.

"Asian markets including BEI weakened this morning after correction recorded by the US stock exchanges last weekend," Samuel Sekuritas` analyst Benedictus Agung said here on Monday.

Benedictus said negative sentiment came from the United States with market players expecting a widening in the US debt ceiling.

"The market is also awaiting the release of Chinese manufacture data early this week," he added.

Alfiansyah, head of research of PT Valbury Asia Securities, said the US debt ceiling could be a new threat to the market for fear of US default.

Alfiansyah said he hoped the impact of the Fed delaying reduction of monetary stimulus could open the wider the door for foreign capital to enter the Indonesian market.

The policy adopted by The Fed Governor Ben Bernanke also signaled delay in raising interest rate until 2016.

"The US commitment to maintain low interest rate would result in improvement of sentiment in risky markets including share markets. The policy adopted by the US monetary authority will bring about good nuance in the financial and share markets in Indonesia this week," Alfiansyah said

Regional markets such as Shanghai Stock Exchange recorded a 0.97 percent increase in index to 2,213.12 points, with Nikkei-225 index down 0.16 percent to 14,742.42 points and that of Straits Times weakening 0.61 percent to 3,218.29 points.

Meanwhile the Indonesian currency rupiah also weakened against the US dollar on profit taking .

The currency opened 275 points weaker in the morning trading on Monday at11,330 per US dollar in interbank transaction from the level of 11,055 earlier.

"After gaining and reaching the level of 10,000 last weekend the domestic currency lost value against the US dollar as a result of profit taking," chief researcher of Trust Securities Reza Priyambada said.

He said the market players began to question the effectiveness of the external sentiment resulting from the US central bank monetary policy and their attention had been turned back to the domestic factor of current account deficit.

"The impact of positive sentiment from The Fed meeting on the financial market was only short lived," he said.

Lukman Leong, the financial market observer from PT Platon Niaga Berjangka said rupiah is still in the process of consolidation after the The Fed`s decision .

Lukman said the rupiah would return to the track of recovery only when inflation has been out under control and improvement in the country`s balance of payment.

"Bank Indonesia should be cautious with hot money in the capital market. BI should be consistent in continuing tight money policy," he said. (*)

Editor: Heru Purwanto
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