Negative US sentiment blocked the BEI index from rising."Jakarta (ANTARA News) - Jakarta composite share prices index fell on Monday on negative sentiment from the United States.
The index of the Indonesian Stock Exchange closed 2.49 percent lower at 4,316.18 points with the index of 45 most liquid stocks shrinking 3.66 percent to the level of 712.90.
HD Capital`s analyst Yuganur Wijanarko said disagreement on US debt ceilings prompted more share sales.
The US government needs more debts which are already close to debt ceiling to finance government bills, but the Congress opposes the use of more debts.
"Negative US sentiment blocked the BEI index from rising," Yuganur said.
He recommended investors buy the shares of Media Nusantara (MNCN), Bumi Serpong Damai (BSDE), Telekomunikasi Indonesia (TLKM), PT Timah (TINS).
Equity Analyst of PT Sinarmas Sekuritas, Christandi Rheza Mihardja, predicted the BEI index would fall lower on Tuesday to a level of 4,255 to 4,353 points.
"Trade would be determined by Japan`s household spending data, which are expected to rise. Meanwhile , the US budget would be announced tonight," Christandi said.
Inflation, trade balance data of Indonesia would also determine the share price fluctuation , he said.
Trading at BEI on Monday had 132,847 transactions with 3.80 billion shares worth Rp5.02 trillion changing hands.
Regional markets such as Hang Seng recorded a 1.5 percent fall in index to 22,859.86 points with Nikkei-225 index shrinking 2.06 percent to 14,455.80 points and that of Straits Times down 0.99 percent to 3,178.88 points.
(Uu.H-ASG/A014)
Editor: Priyambodo RH
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