The index of the Indonesian Stock Exchange (BEI) fell 36.11 points to 4,180.79 points with index of 45 most liquid stocks down 1.15 percent to 691.03 points.
Chief researcher of Trust Securities, Reza Priyambada, said negative sentiment still prevailed with rupiah continuing to lose value against the US dollar.
Reza said the impact of US market fall was bad on Asian markets including BEI.
"Meanwhile, there is no new positive news domestically to lift the BEI index from the negative area," he added.
HD Capitals analyst Yuganur Wijanarko said the market players tended to take a safe position ahead of the decision of the US central bank, which is expected to reduce its financial stimulus.
"The condition prompted share sales by investors resulting in deeper fall of index," Yuganur said.
Trading on Friday at BEI was recorded with 121,798 transaction with 4.26 billion shares valued at Rp4.28 trillion changing hands.
Gainers were outnumbered by decliners by 101 to 167.
Regional markets such as Hang Seng recorded a 0.13 percent increase in index to 23,743.10 points with Nikkei-225 index climbing 0.81 percent to 15,299.86 points and that of Straits Times down 0.23 percent to 3,117.27 points.
Meanwhile rupiah lost more value in interbank transaction trading at the level of 11,967 per US dollar from 11,962 earlier.
Platon Niaga Berjangkas analyst Lukman Leong said rupiah was still on the decline and it could sink deeper next year unless there is positive sentiment to prop it up.
"If it failed to regain strength this month it would be more difficult to maintain the stability of domestic exchange rate next year as the impact of the Fed tapering off issue would be heavier," he said.
The market could still accept the level of 12,000 per dollar, but rupiah weakening to beyond that level could result in panic and crisis of confidence in the national currency, he said.
Rully Nova, a financial market analyst from Bank Himpunan Saudara, said rupiah was quite stable fluctuating in a narrow range by the weekend probably caused by Bank Indonesia intervention.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
