TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange was traded 45.59 points lower compared to its Thursday closing price on Friday morning as a result of negative sentiments from the global stock market. The JCI weakens by 0.91 percent to 4,948.28, while the Top 45 Index (LQ45) weakens by 11.42 points, or equals to 1.35 percen, to a level of 832.97.
"Markets in Asia - the Indonesian Stock Exchange included - are experiencing a general downtrend following investor sentiments in the United States (US), amidst concerns that the European economy is not growing as it supposed to be," said Tiesha Narandha Putri, an analyst for Samuel Sekuritas in Jakarta on Friday, October 10, 2014.
According to Tiesha, slowing economic growth in Europe would force market players to readjust their expectations on the US economic recovery, which will drive a number of investors to secure their assets in other forms.
"The European Central Back [ECB] said that economic growth in Europe has lost its momentum," she said.
She also said that shares in the banking and property sector, as well as the Rupiah's exchange rate, are going to experience correction on Friday, after experiencing a quite significant gain during Thursday's trading session.
"A combination of negative domestic and global sentiments are contributing to Rupiah's downturn," she said.
Meanwhile, Tim Iain, a technical analyst for Mandiri Sekuritas, said that Bank Indonesia's (BI) Business Survey (SKDU) indicated that business activities have booked slower growth in the third quarter of 2014, compared to the last period. In fact, current growth rate is slower than last year's figure.
According to BI's release, the slow growth is reflected in this quarter's adjusted net balance (SBT) rate of 11.25 percent, which is lower than the SBT in the previous quarter, which was recorded at 21.05. Mwanhile, SBT for the third quarter of 2013 was recorded at 13.35 percent.
"The JCI will hover around 4,985 to 5,007 today," said Tim.
Meanwhile across Asia, Hong Kong's Hang Seng Index (HKG) drops by 322.75 points or 1.37 percent to a level of 23,211.78, while the Japanese Nikkei (NI225) drops by 152.95 points to 15,334.14.
Singapore's Straits Times Index (STI) also drops by 26.11 percent or equals to 0.81 percent to a level of 3,232.02.