Trade on Wednesday would be influenced by the BI Rate, which was unexpectedly raised to 7.5 percent."Jakarta (ANTARA News) - The Indonesia stock exchange (IDX) index closed down to 4,380.64 on Tuesday, after Bank Indonesia raised its BI Rate.
The IDX index closed down 61.08 points, or 1.39 percent, to 4,380.64, while the index of the 45 most liquid stocks (LG45) dropped 11.99 points (1.64 percent) to 731.16.
PT Anugerah Securindo Indah analyst Bertoni Rio said Bank Indonesias decision to raise its reference rate to 7.5 percent on Tuesday would burden issuers performances, thus pressuring shares traded at the Indonesia Stock Exchange.
"The hike of the BI Rate by 25 basis points to 7.5 percent has the potential to burden companies performance growths, such as those in the banking, property, multifarious industries and trade," he said.
He added that foreign market players, who still took a selling position, meanwhile, had increased pressure on the exchange index.
Foreign net selling was recorded at Rp464 billion.
He said the rupiah's depreciation to Rp11,601 per US dollar was also one of the factors that caused the IHSG index to drop on Tuesday.
Sinarmas Sekuritas analyst Christandi Rheza Mihardja, meanwhile, predicted the IDX index would fluctuate at between 4,350 and 4,410 on Wednesday.
"Trade on Wednesday would be influenced by the BI Rate, which was unexpectedly raised to 7.5 percent," he said.
He projected that shares of Jasa Marga (JSMR), Astra Agro Lestari (AALI), Indo Tambangraya Megah (ITMG) and Adaro Energy (ADRO) would move higher.
Transactions at the IDX on Tuesday reached 157,086, involving 4.64 billion shares worth Rp5.23 trillion.
Also, the regional Hang Seng index was down 168.44 points (0.73 percent) to 22,901.41 on Tuesday, while the Nikkei-225 was up 318.84 points (2.23 percent) to 14,588.68 and Straits Times dropped 3.86 points (0.12 percent) to 3,182.86.
(Reporting by Zubi Mahrofi/H-YH/INE/KR-BSR/A014)
Editor: Priyambodo RH
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