Jakarta (ANTARA News) - The Jakarta composite index (JCI) shrank on Wednesday closing at 1.05 percent lower on negative sentiment from regional markets.

The index of the Indonesian Stock Exchange fell 54.69 points to 5,159.66 points with index of 45 most liquid stocks down 1.18 percent to 886.93.

"Global marketing being in the negative territory triggered the JCI fall," PT Investa Saran Mandiris analyst Kiswoyo Adi Joe said.

Kiswoyo said market players were prompted to sell shares, while awaiting report about US retail sales date.

The US retail sales are expected to improve that investors are worried that increase in the Fed interest rate could come earlier, he said.

Meanwhile the market players are awaiting realization of the government infrastructure projects, he added.

Implementation of infrastructure projects would contribute to the countrys economic development that in turn would promote the Indonesia investment rating to "investment grade", he said.

Promotion to investment grade would offset the impact of the negative sentiment from an increase in the Fed interest rate, he added.

Trade at the BEI on Wednesday was closed with 244,163 transactions and 6.39 billion shares worth Rp4.23 trillion changing hands.

Regional markets such as Hang Seng, Nikkei and Straits Times suffered a decline in indices.

Meanwhile, the national currency took a dip trading at the level of 12,591 per US dollar from earlier level of 12,580 .

"Falling oil and primary commodity prices are one of the negative sentiment weakening rupiah," financial market observer from Bank Himpunan Saudara, Rully Nova, said.

Falling prices of primary commodities would have negative impact on the countrys export performance, Rully said.

The market is also awaiting a decision of Bank Indonesia on its benchmark interest rate to be announced on Thursday.

Chief researcher of Monex Investindo Futures Ariston Tjendra said investors still still seek to invest in safe have the US dollar, giving a negative sentiment to the currencies of developing countries including rupiah.

Market decline and falling oil prices prompting investors to change assets to safe haven, he said.

(H-ASG/H-YH)

Editor: Suryanto
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