The main share price index on the Indonesia Stock Exchange (IDX) continued to fall on Tuesday although a number of shares managed a recovery following a significant fall on Monday.
The Jakarta Composite Index (JCI) fell by 0.91 percent to close at 6,119.47 in active trading. The JCI performance followed the downward trend in regional indices which also mostly dropped during the day.
Most Southeast Asian stock markets closed lower, with the Philippines losing 1.6 percent, as fears of a possible currency war between the United States and China spooked investors.
The JCI fell by 2.59 percent on Monday in line with most Asian indices, amid rising concern about a global trade war and Indonesia’s slowing economic growth in the second quarter of this year.
Like the prices of local shares, the Indonesian further declined on Tuesday. At the close of the trading. Rupiah lost 22 points or 0.15 percent to Rp 14.277 per US dollar.
The Indonesian price index remained under pressure despite support from domestic investors as foreign investors sold off Rp 956.07 billion (US$67.28 million) during the first session of the day. State-owned lender Bank Rakyat Indonesia was the most sold stock at Rp 336.2 billion, while consumer goods firm PT Unilever Indonesia was the most bought stock of the day at Rp 13.3 billion.
Despite showing signs of recovery, Pilarmas Sekuritas research director Maximilianus Nico Demus told The Jakarta Post that he doubted whether the index would rebound today.
“I think the index still needs more time, at least until tomorrow, to regain its strength,” he said via text message, adding that yesterday’s negative sentiment still loomed over the index today prompting investors to sell their shares. (hen)