REPUBLIKA.CO.ID, JAKARTA -- The Jakarta composite index fell in the opening trade on Monday on negative external sentiments, analysts said.

The index of the Indonesian Stock Exchange opened 79.61 points or 1.79 percent lower at 4,357.73 points with index of 45 most liquid stocks down 3.55 percent to 720.49 points.

Chief researcher of Trust Securities Reza Priyambada said indices of Asian markets including BEI index extended correction on Monday on worries about Chinese and Japanese macro economic data not up to market expectation.

"Market players took advantage of the negative sentiments to quit. Meanwhile the share buying at BEI had been saturated prompting share sales," Reza said.

Shares which were expected to rise in price began to fall, he said, adding, the share price fall also attributable to significant decline in the prices of shares in US market.

He predicted share sales would still continue on Monday.

Head of Research of Valbury Asia Securities, Alfiansyah, said the players in financial market also were worried that financial crisis in Argentina could spread to stock markets in developing nations including BEI.

The impact could hit the Indonesian stock market this week, he said.

However, Indonesian sentiment is relatively positive, with the finance ministry said the country's debt position is in safe position.

"The government debts are used to finance productive activities such as construction of infrastructure that could provide a double effect on the country's economy," he said.

Regional markets such as Hang Seng recorded a 2.22 percent decline in index to 21,951.56 points with Nikkei index down 2.60 percent to 14,991.91 points and that of Straits Times falling 1.49 percent to 3,030.12 points.

Ikuti Whatsapp Channel Republika