The index of the Indonesian Stock Exchange (BEI) fell 0.36 percent to 4,359.03 points with index of 45 most liquid stocks down 0.56 percent to 727.32 points.
Chief researcher of Trust Securities, Reza Priyambada, said profit taking continued until Tuesday morning weakening the BEI index.
Samuel Sekuritas` analyst Benedictus Agung said partial US government shutdown still weighed on the global markets including BEI.
However, positive domestic sentiment would help prop up the BEI index, he said, pointing to an increase in the country`s foreign exchange reserves to 95.7 billion in September, resulting in rupiah stability.
The market is also waiting for the decision of Bank Indonesia on its benchmark interest rate (BI rate).
"The market believe that the central bank would maintain the BI rate at 7.25 percent," he said.
He predicted that property and construction stocks would rise on Tuesday after significant fall on Monday.
Regional markets such as Hang Seng recorded a 0.24 percent increase in index to 23,028.16 points, with Nikkei-225 index down 0.12 percent to 13,837.19 points and that of Straits Times gaining 0.07 percent to 3,138.63 points.
Meanwhile, rupiah was stable in interbank transactions in the opening trade on Tuesday, flat at the level of 11,205 per US dollar.
"The rupiah stability is attributable to an increase in the country foreign exchange reserves in September," Samuel Sekuritas` economist Rangga Cipta said here on Tuesday.
Bangga said the move taken by the government and Bank Indonesia in raising US dollar through the sales of global bonds and the currency swap facility began to show result.
"With the additional liquidity in US dollar stability in exchange rate could be created.
"It is also important to wait for the result of prudential macro policy from the meeting of Bank Indonesia Board of Governors today," he said.
He said Bank Indonesia is expected to announce its decision on BI rate on Tuesday.
Reza Priyambada said rupiah would also gain from euro and yen appreciation with the dollar weakening on a standoff over raising the US government borrowing limit and protracted debate on state budget.
In addition, the yield on the US dollar denomination bonds issued by the government fell slightly in line with the positive evaluation of the surplus in the country`s trade balance in August. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
