TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange slipped by 15.62 points or 0.29 percent at the start of Thursday's trading session to open at 5,429.48 points.

Meanwhile, the Top 45 (LQ45) Index similarly went down by 3.94 points or 0.42 percent to open at 946.88 points.

The head of research at NH Korindo Securities Indonesia, Reza Priyambada, said in Jakarta on Thursday that some shares across several domestic sectors were in an overbought state after having rallied for several consecutive days.

"The JCI is flatlining and, as such, scores of investors are choosing to hold off from purchasing more shares in anticipation of a trend reversal," said Reza.

On the other hand, some investors have chosen to continue investing in the Indonesian market, which means that the JCI could still close in the green towards the end of the day—possibly even breaching its record closing position at the end of Thursday's trading session, said Reza.

An analyst for Asjaya Indosurya Securities, William Surya Wijaya, said that the JCI's movement was still supported by the continued flow of foreign investment into the Indonesian market, which reflected the confidence among investors on Indonesia's economic performance outlook.

Furthermore, continued William, regional economic performance indicators, which included China's manufacturing index released by HSBC that indicates some degree of expansion, had boosted the growth of several bourses across Asia, including the JCI.

"JCI's correction today is normal, and investors should consider to continue accumulating shares as the JCI's uptrend is expected to remain for a little while," said William.

Meanwhile, across Asia, the Hang Seng Index dropped by 38.71 points or 0.16 percent to open at 24,739.57 points, the Nikkei rose by 71.53 points or 0.38 percent to open at 18,656.73 points, while the Straits Times Index declined by 16.07 points or 0.46 percent to commence trading at 3,425.32 points.

ANTARA