The index of the Indonesian Stock Exchange (BEI) fell 27.65 points or 0.61 percent to 4,492.26 points with index of 45 most liquid stocks down 0.79 percent to 757.28 points.
"After long weekend and Idul Adha holidays, the BEI index closed lower on failure to reach an agreement between the US government and the Congress on debt ceiling.
The deadline is drawing near to Oct. 17 when the US government would be declared being in default if no agreement was reached on the borrowing limit, Panin Sekuritas` analyst Purwoko Sartono said.
Purwoko said the international rating agency Fitch already gave the US debt triple A rating a negative outlook.
The US debt ceiling is still the biggest factor shadowing the BEI index movements, he said.
He predicted the BEI index would move around 4,460--4,520 points on Thursday.
Sinarmas Sekuritas` analyst Christandi Rheza Mihardja said trade on Thursday would be determined by a decision of the US Senate on the debt ceiling.
The position taken by the US Congress has resulted in partial government shutdown with no signs of a compromise on the debt ceiling that could result in the US government being in a default.
Trading on the BEI on Wednesday recorded 145,051 transactions with 2.567 billion shares worth Rp3.907 trillion changing hands.
Decliners outnumbered gainers by 162 to 93 with 103 shares flat.
Regional markets such as Hang Seng recorded a decline of 0.46 percent in index to 23,228.33 points with Nikkei-225 index up 0.18 percent to 14,467.14 points and that of Straits Times gaining 0.28 percent to 3,174.03 points.
Meanwhile, rupiah extended losses against the US dollar on report of agreement on US budget to ward off default.
In interbank transactions on Wednesday afternoon rupiah traded at the level of 11,195 per dollar weakening from the previous level of 10,980.
However, the chief researcher of Monex Investindo Futures, Ariston Tjendra, said the rupiah fall had been curbed on speculation that the US central bank would delay monetary stimulus taper.
Positive sentiment from the country is swap facility agreement between Bank Indonesia and South Korean counterpart, Ariston said.
He said the agreement will strengthen Indonesia`s foreign exchange reserve contributing to exchange rate stability on the domestic market.
Ruly Nova, a financial market observer from Bank Himpunan Saudara, said the opportunity is till open for rupiah to regain some of its losses with the government`s determination to face external sentiments.
"Domestic economic data have tended to be positive. The condition would contribute to strengthening the market confidence reducing the pressure on rupiah," Ruly said.
Meanwhile, the middle rate of Bank Indonesia on Wednesday showed that rupiah gained to 11,316 per dollar from the previous level of 11,475 on Oct 11.
(H-ASG/B003)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
