REPUBLIKA.CO.ID, JAKARTA -- The Jakarta composite index (JCI) opened lower on Wednesday to follow the trend in the global markets.
The index of the Indonesian Stock Exchange (BEI) fell 24.6 points or 0.45 percent to 5,438.32 points with the index of 45 most liquid stocks down 0.65 percent to 943.17.
"Further rise of JCI was curbed by worries over the impact of falling oil prices and Greek financial instability and aid negotiations," Head of Research of Valbury Asia Securities Alfiansyah said.
He said the market players are awaiting results of a meeting between Greece and the European Commission, the European Central Bank and the International Monetary Fund (IMF).
The meeting was on plan to disburse an emergency loan fund for the debt ridden Greece, he said.
In addition, there is strong speculation that the Fed would raise its fund rate sooner that would send the US dollar higher over other currencies adding to the market uncertainty, he said.
Meanwhile, with low inflation, Bank Indonesia still expressed optimism the condition in the country is still under control despite the shrinking value of rupiah over the past several days, he said.
"Minimum positive sentiments especially external sentiment would keep the JCI under pressure," he said.
Senior analyst from LBP Enterprise Lucky Bayu Purnomo said the government should back up its statement that things are still under control by maintaining price stability to give positive signal.
Lucky Bayu Purnomo said Bank Indonesia should further cut its benchmark interest rate (BI rate) to boost domestic economic expansion.
Regional markets such as Hang Seng and Straits Times recorded a decline in indices but Nikkei recorded gain.
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