"The market players bought more than buying shares after significant increase in the price of domestic shares last week," analyst Reza Priyambada, saidJakarta (ANTARA News) - The Jakarta composite share price index edged down in Wednesday`s opening trade on profit taking.
The index of the Indonesian Stock Exchange (BEI) fell 17.06 points or 0.4 percent to 4,502.86 points with the index of 45 most liquid stocks falling 0.56 percent to 758.62 points.
"The market players bought more than buying shares after significant increase in the price of domestic shares last week," chief researcher of Trust Securities, Reza Priyambada, said here.
The BEI index, however, could rise amid market optimism that the US Congress would finally agree to increase the US debt ceiling.
"The US sentiment could bring about positive sentiment, but if the Congress continued to reject proposed increase in the borrowing limit there would be a turbulence," Reza said.
Samuel Sekuritas` analyst Benedictus Agung said the BEI index would move levelly on Wednesday with the market still waiting for the US budget decision.
"Minimum positive sentiments both in domestic and regional markets would make the trade quiet today," Benedictus said.
Regional markets such as Hang Seng recorded a decline of 0.5 percent in index to 23,220.70 points with Nikkei-225 index down 0.02 percent to 14,438.05 percent and that of Straits Times gaining 0.38 percent to 3,176.97 points.
Meanwhile, the country`s currency rupiah lost more value against the US dollar in the first minutes of trading on Wednesday.
The currency traded at the level of 10,985 per dollar in interbank transaction weakening slightly from earlier level of 10,980.
"The rupiah value tended to be stable amid market support for Janet Yellen as the sole candidate for the new governor of The Fed replacing Ben Bernanke," Reza Priyambada said.
He said the risk pressure on the foreign exchange market in Indonesia is less intense with indication of the US budget agreement.
"The condition opens an opportunity for rupiah to regain some of its lost value against the US dollar," he said.
Meanwhile, the rupiah value also tended to be positive in non-deliverable forwards (NDF) trade, he said.
Financial market observer Rangga Cipta of Samuel Sekuritas, said the rating agency The Fitch which gave a rating of negative outlook for the US debts could hold the dollar appreciation.
Bank Indonesia (BI) which just reached a new currency swap agreement with South Korea worth US$10 billion to be effective for three years is expected to prevent turbulence on the domestic financial market.
Earlier Bank Indonesia already signed similar agreements with China and Japan with swap facility for US$15 billion and US$12 billion respectively.
"The agreements are expected to be effective in maintaining stability in exchange rate and supply of US dollar amid the threats of trade deficit and capital flights," he said. (*)
Editor: Heru Purwanto
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