TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) at the Indonesian Stock Exchange (IDX) on Monday, August 24, 2015, plunged by 172.22 points, as global economic outlook remains bleak.
The JCI closed 3.97 percent lower to end trading at 4,163.72 points, while the Top 45 (LQ45) Index similarly slipped by 35.02 points or 4.81 percent to conclude trading at 692.20 points.
An analyst for Investa Saran Mandiri, Kiswoyo Adi Joe in Jakarta said that the worsening global economic outlook has slowed the appreciation of share markets across the globe, including the IDX.
"Negative global sentiments have impacted the IDX, which drives domestic investors to unload their holdings in the Index as a buffer against further losses," said Joe.
That said, Joe remains optimistic that the depreciation will subside in the near future as Indonesia's economic fundamentals are still at a healthy state - as reflected by Indonesia's liquidity reserves.
Furthermore, the Financial Services Authority (OJK), decision to let publicly traded companies could now buy shares without the consent acquired from an General Shareholders' Meeting (RUPS), have also helped the Index from plunging even further.
"Buybacks done by publicly traded companies will help with narrowing the amplitude of the Index's fluctuation," said Joe, who is appreciative of the OJK's pace of reaction.
The Head of Research for NH Korindo Securities Indonesia, Reza Priyambada said that publicly traded companies, especially State-owned Enterprises (SoEs), should take full advantage of the newly passed regulation to stop the Index from plunging further.
"It is hoped that the government would also speed up the construction of its' infrastructure projects, because it will make the Indonesian market more attractive to investors," said Reza.
IDX records show that throughout Monday, there were 309,923 transactions, wherein 5.56 billion shares worth Rp 5.34 trillion were traded.
Meanwhile across Asia, the Hang Seng Index slipped by 1,158.05 points or 5.17 percent to conclude trading at 21,251.57 points, the Nikkei similarly plunged by 895,15 points or 4.61 percent to end trading at 18,540.68 points, and the Straits Times Index similarly slipped by 116,48 points or 3.92 percent to close at 2,854.53 points.