IDX Back in Red as Foreign Companies Unload Asian Shares

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  • Bursa Efek Indonesia, Jakarta. TEMPO/Tony Hartawan

    Bursa Efek Indonesia, Jakarta. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - The unloading of shares by foreign companies with large capitalization is pressuring the Indonesian Stock Exchange (IDX), which continues to tumble as the market corrects its standing. 

    The Jakarta Composite Index (JCI) at the IDX slid by 8.67 points or 0.17 percent to trade at 5,135.33 points on Tuesday afternoon. IDX records show that 3.4 billion shares worth Rp2.1 trillion were exchanged, with foreign companies booking a net sales of Rp291 billion. 

    An analyst for Universal Broker Indonesia, Satrio Utomo, said that negative sentiments echoed by regional bourses, as well as the continuously declining global oil prices, were putting the IDX under strain. "Unfavorable performance figures from Asian bourses are pushing foreign companies to unload their shares," he said. 

    The declining global oil prices has not only caused the rupiah's depreciation against the US dollar, as it has also impacted the value of financial assets in developing markets, including the IDX. 

    According to Satrio, the JCI is set to experience more downtrend as long as investors continue to unload their shares as a buffer from further losses. The situation is exacerbated by the fact that the majority of the shares that are being unloaded by foreign investors are the big movers-and-shakers in the IDX, including Bank BRI (BBRI), Astra International (ASII), and Semen Indonesia (SMGR). 

    Satrio advised investors to hold out until the IDX's bearish movements subsided. He also told investors to return to the IDX once the index reached its support level at 5,088 points and economic performance figures began to indicate an imminent rebound. "Be on the lookout for blue-chip shares once share prices becomes more stable," he said. 

    As per 12.45 Jakarta time, the Nikkei 225 traded lower by 0.61 percent, Hang Seng also inched lower by 0.92 percent, while South Korea's KOSPI index and Bursa Malaysia similarly declined by 0.3 percent and 0.21 percent, respectively. 

    PDAT | M. AZHAR