Jakarta composite index sinks on trade war sentiment

Jakarta, (ANTARA News) - The Jakarta composite index (IHSG) opened lower on Friday on trade frictions involving worlds big powers, analysts said.

The index of the Indonesian Stock Exchange (BEI) fell 35.11 points or 0.60 percent to 5,810.13 points, and the index of 45 most liquid stocks dropped 0.95 percent to 911.45 points.

Chief researcher of the Valbury Sekuritas Alfiansyah said the pessimism expressed by President Donald Trump about possible talks with China over trade dispute gave rise to pressure on global share markets.

"This global sentiment makes it difficult for the IHSG to move to positive territory this weekend," Alfiansyah said.

He said U.S. Trade Minister Wilbur Ross also said trade talks with China is stopped for the time being.

Senior analyst of CSA Research Institute Reza Priyambada said positive domestic sentiment from listed companies was not enough to counter balance the negative impact of the global sentiment.

"Expectation of improved financial performance of listed companies in the third quarter could not keep the IHSG in positive territory," Reza said.

Regional markets such as Nikkei, Hang Seng and Strait Times also recorded a decline in index.

Source: ANTARA News

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