Despite technical indicators pointing toward a potential rise of Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG), foreign net selling on Wednesday's trading day (12/03) caused the 0.42 percent decline to 4,684.38 points. Only two sectors recorded a positive performance today: consumer goods and property. Companies that did particularly well were Danayasa Arthatama, Metropolitan Land, Agung Podomoro Land, Siantar Top, and Kedawung Setia Industrial.
What were the factors that brought negative sentiments to the Jakarta Composite Index today? Most Asian stock indices were down and, as usual, this influenced the performance of the IHSG. A number of weak economic data releases across Asia were the cause of concern among global investors. In South Korea the unemployment rate rose, in both Japan and Australia consumer confidence fell, while home loans in the latter remained flat in January 2014 (against expectations of a lift). Lastly, an appreciating Japanese yen also impacted negatively on Asian stocks. Not even Japan's higher BSI large manufacturing was able to offset the aforementioned negative factors.
From the domestic side, the Indonesian rupiah exchange rate depreciated against the US dollar. Based on the Bloomberg Dollar Index, the rupiah depreciated 0.24 percent to IDR 11,427 per US dollar, while based on the Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) weakened 0.42 percent to IDR 11,432 per US dollar on Wednesday (12/03).