JCI Declines Nearly 1% as Rupiah Falls To 3-Week Low

JANUARY 06, 2015

Jakarta. The stocks on the Indonesian bourse fell by nearly 1 percent on Tuesday, as foreign investors dumped their holdings and the rupiah touched its weakest level in three weeks against the dollar.

The Jakarta Composite Index fell 50.94 points or 0.98 percent to 5,169.06, extending 0.4 percent loss on Monday.

The foreign investors sold Rp 440 billion ($34 million) more in stocks than they bought, bringing the total net sell to Rp 589 billion in the first three trading days of this year.

Foreign investors bought more than Rp 40 trillion in stocks last year and helped fuel a 22 percent gain in the stock exchange, placing the local bourse among the best performers in Asia.

Global oil prices dropped to below $50 per barrel for the first time since 2009 on Monday, fueling concerns of prolonged low global commodity prices, on which revenues of many Indonesian companies depend, analysts said.

Indonesian stocks were lower in line with declines on other bourses in the region, including South Korea’s Kospi, which fell 1.74 percent and Japan’s Nikkei, which  was down 3.02 percent.

At Indonesia Stock Exchange (IDX), all sectors were down, led by the mining and basic industry and chemical sectors, which declined by 1.69 percent and 1.4 percent respectively.

Astra International, the country’s largest conglomerate with businesses ranging from vehicle distribution to plantation, mining and banking, was among the biggest losers with its share price declining by 2.4 percent to trade at Rp 7,050.

Shares in Indocement Tunggal Prakarsa, the country’s second-largest cement maker,  fell by 2.2 percent to Rp 24,225 a piece.

The rupiah traded at 12,658 to the dollar, according to Bank Indonesia’s fixing rate on Tuesday, reaching its lowest level since Dec. 17.

The yield of government 10-year bonds rose to 8.0569 percent on Tuesday from 7.9757 percent a day earlier, according to Indonesia Bond Pricing Agency data.

The government sold Rp 12 trillion in bonds on Monday in its first bond issuance this year.