IHSG opens lower on trade war uncertainty

Jakarta, (ANTARA News) - The Jakarta composite index (IHSH) opened lower on Thursday down 0.34 percent on trade war uncertainty, analyst s said .

The index of the Indonesian Stock Exchange (BEDI) fell 20.13 points to 5,847.59 points with the index of the 45 most liquid stock down 0.54 percent to 920.29 points.

Chief researcher of Valbury Sekuritas, Alfiansyah, said the market players were still confused by the trade war uncertainty as a result of policy adjustments by the two adversaries.

"Police adjustments by the United States and China are feared to trigger new global turbulence," Alfiansyah said.

Meanwhile the countrys currency rupiah, lost more value opening at the level of 15,139 per U.S. dollar on Thursday from the previous level of Rp15,064 .

The U.S. dollar rose over a number of strong currencies in the world on improved labor data of the worlds largest economy, economist of Samuel Sekuritas Ahmad Mikail said .

Mikail said the oil price hike rising to US%76 per barrel also contributed to growing pressure on rupiah.

Senior analyst of CSA Research Institute Reza Priyambada said the oil price hike could contribute to widening the countrys current account deficit.

"External sentiment affect the investment policy of the market players in the country. The government is expected to issue a new policy to prop up rupiah," Reza said.

Investors were worried by fluctuation of rupiah, which tended to weaken against the U.S. dollar, he added.

A number analysts predicted the pressure on rupiah would continue until 2019 as the U.S. Central Bank is yet to raise its fund rate .

Former Finance Minister Chatib Masri said the U.S. Central Bank has yet to raise its fund rate once this year and twice or three times next year.

The pressure on rupiah would continue at least until June in 2019, but the country would not plunge into crisis, he said.

Source: ANTARA News

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