TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) went down by 50.54 points or 1.09 percent to commence trading at 4,572.04 points, while the Top 45 (LQ45) Index similarly went down by 12.93 points or 1.66 percent to begin trading at 768.17 points.
"The absence of a growth catalyst for the domestic market as well as the domestic market has driven the JCI into the red," said the Head of Research for Universal Broker Indonesia, Satrio Utomo.
According to Utomo, the market is entering a consolidation phase after the Chinese government decided to devalue its currency.
On the other hand, continued Utomo, the government's plan to announce a cabinet reshuffle is adding to the uncertainty in the market.
Utomo called on investors to remain ration in dealing with the circumstances, as the chances for further economic growth remains wide open - thus a selective accumulation of shares is advised.
"In the longer run, domestic shares are still attractive in terms of its fundamentals and returns," said Utomo.
IDX Director, Samsul Hidayat, said that the Indonesian share market is a part of the global economy, and any negative movement in the global market is bound to reflect itself in the domestic market, as it impacts both local and international investors' decision making process.
"It could be that currently, investors are looking first and foremost to buffer their portfolio from further losses - that said, investors need to be focusing more on performance and fundamentals, as it is quite apparent that Indonesian shares are still showing signs of further growth," said Hidayat.
Hidayat also said that the IDX, as a regulator, will not intervene in the market. "We will make sure that trading is done in the appropriate and accepted manner - but that's about it," he said.
Meanwhile across Asia, the Hang Seng Index slipped by 295.80 points or 1.21 percent to commence trading at 24,202.41 points, the Nikkei also slupped by 257.56 points or 1.24 percent to begin trading at 20,463.19 points, while the Straits Times Index slipped by 90.31 points or 2.86 percent to start trading at 3,062.75 points.