The index of the Indonesian Stock Exchange (BEI) fell 27 points or 0.65 percent to 4,175.81 points with the index of 45 most liquid stocks down 0.73 percent to 694.47 points.
Reliance Securities analyst Lanjar Nafi in Jakarta said US "Purchasing Managers Index" (PMI) AS that fell 90 basis points in December 2013 put pressure of the BEI index.
In addition the pressure on farm-based stocks in the country added to the negative sentiment in the domestic market, Lanjar said.
The prices of food products in the world market are expected to decline putting pressure on the farm-based stocks, he said.
He predicted the BEI index would fluctuate and tended to decline on Wednesday despite positive news of Indonesian bonds given BBB- (triple B minus) rating by the Fitch Ratings.
"Chinese economy, which is predicted to weaken also contributed to the pressure on the domestic market, he said.
Investors would be more cautious in making a decision ahead of the monthly meeting on Thursday of Bank Indonesia management which is expected to announce its decision of the central bank benchmark interest rate, he said.
Sinarmas Sekuritas analyst Christandi Rheza Mihardja said trading on Wednesday would be determined by data about European inflation, which is predicted to rise -0.9 percentage point on-year and US trade balance which is forecast to be US$40 billion in the red.
In addition, China would release its trade balance, which is expected to have a surplus of US$33 billion, he said.
There were 146,287 transactions with 3.42 billion shares worth Rp3.26 trillion changing hands in Tuesdays trading at BEI.
Regional markets such as Hang Seng rose 0.13 percent in index to 22,721.78 points with Nikkei index down 0.59 percent to 15,814.37 points and that of Straits Times gaining 0.09 percent to 3,126.60 points.(*)
Editor: Heru Purwanto
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