REPUBLIKA.CO.ID, JAKARTA -- The Indonesia Stock Market's (JCI) composite index closed lower on Tuesday afternoon due to market panic that took off shares. The JCI closed lower by 68.68 points, or 1.06 percent, to 6,426.32, while the 45 leading stocks, or the LQ45 index, moved down 11.94 points, or 1.17 percent, to 1,008.82.

Panin Sekuritas analyst William Hartanto stated in Jakarta on Tuesday that the sell-offs carried out by market players were caused by a decline in recommendations on the Indonesian stock market to 10 percent (underweight) from 20 percent (overweight) by global securities company Credit Suisse.

"Initially, technically, the JCI only closed the gap at 6,460 and succeeded after closing. It had rebounded slightly. However, the condition was worsened by the news that stocks in Indonesia were 'downgraded' by one foreign securities, so that the JCI declined 'overdose'," Hartanto noted.

Nevertheless, he continued that the decline in the JCI was not comparable with the value of the sale of shares, which was relatively minimal and more directed at creating panic in local market players.

"This correction is not comparable with foreign 'net sell;' this is more than just" panic selling because of the news effects. So it is more precisely called anomaly, especially when compared to Asian exchanges, where the majority is strong," he explained.

Not until half an hour after it opened higher, the JCI then weakened and continued to be in the red zone until the closing of the stock exchange. The closing of the JCI itself was accompanied by selling of shares of foreign investors, as indicated by net selling or "net foreign sell" of Rp566.23 billion.

The frequency of stock trading on Tuesday was recorded at 535,153 transactions, with the number of shares traded reaching as many as 14.47 billion shares worth Rp9.85 trillion. As many as 118 shares rose, 309 shares declined, and 114 shares did not move in value.

Meanwhile, regional exchanges, namely the Nikkei index rose 531.04 points (2.61 percent) to 20,864.21; the Hang Seng index rose 27.49 points (0.1 percent) to 28,171.33; and the Straits Times weakened 5, 12 points (0.16 percent) to the position of 3,201.15.

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