TEMPO.CO, Jakarta - Shares at the Indonesian Stock Exchange (IDX) suffered negative corrections as investors began to unload their holdings in response to the market's overbought state.
The Jakarta Composite Index (JCI) slid by 43.98 points or 0.85 percent to close at 5,144.01 points at the end of Monday's trading session, while the LQ45 Index similarly slipped by 9.49 points or 1.06 percent to 884.27 points.
An analyst for HD Capital, Yuganur Wijanarko, said the IDX's overbought position was pushing investors to sell their shares. Yuganur added that the rupiah's recent depreciations against the greenback was also pushing investors away from Indonesian shares. "Investors need to keep an eye out for the rupiah's depreciation, as it may cause further negative corrections for the JCI," said Yuganur.
William Suryawijaya, an analyst for Asjaya Indosurya Securities, said that the outflow of foreign capital from Indonesia was one of the contributing factors to the IDX's downtrend. It is known that foreign investors booked a net purchase of Rp391.79 billion throughout Monday's trading session.
"That said, the movements of foreign capital away from Indonesian markets is relatively within its normal limits, especially in light of Indonesia's declining foreign exchange reserves," said William.
"The corrections experienced by the IDX is nothing out of the ordinary, and that an uptrend is still possible in the longer run," he continued.
IDX records show that there were 224,031 transactions throughout Monday's trading session, herein 5.20 billion shares worth Rp4.22 trillion were traded. The shares of 86 companies went up, 237 shares experienced negative corrections, while 78 others remained stagnant.
Meanwhile across Asia, Hong Kong's Hang Seng Index went up by 45.03 points or 0.19 percent to close at 24,047.67 points, the Nikkei inched upwards by 15.19 points or 0.08 percent to trade at 17,935.64 points, while Singapore's Straits Times Index slid by 22.78 points or 0.69 percent to trade at 3,301.61 points.