Indonesia's benchmark Jakarta Composite Index was down 1.76 percent to 6,563.28 points by 14:20 pm local Jakarta time on Tuesday (30/01). Indonesian shares follow the overall trend that we see across Asia today. However, due to the record high position of Indonesian stocks at yesterday's close, they are more vulnerable to profit taking amid today's weak market sentiments.
Asian stocks are tracking the performance of Wall Street overnight, where stocks fell - after several days of record closing highs - due to weak tech and energy stocks (specifically tumbling Apple shares after the company announced that it is to cut production of its iPhone X smartphone). Meanwhile, a drop in crude oil prices added to the bleak market sentiments today. These are all factors that trigger profit taking.
Investors are also awaiting several news updates from the US. Firstly, the Federal Reserve is set to start its two-day monthly policy meeting. Although it is expected to keep its rates unchanged, market participants are waiting for any clues or hints about future monetary policy decisions in the world's top economy.
Secondly, markets are waiting for US President Donald Trump's first official State of the Union speech (later today). In this speech market participants are specifically interested to hear about progress on NAFTA and trade with China. Thirdly, markets are awaiting the US employment report.
Meanwhile, the US dollar rebounded from a recent three-year low supported by a rise in US bond yields. The Indonesian rupiah had depreciated 0.45 percent to IDR 13,426 per US dollar by 14:55 pm local Jakarta time on Tuesday (30/01) according to the Bloomberg Dollar Index.
Indonesia's Finance Ministry sold IDR 17.55 trillion of bonds at an auction on Tuesday (30/01), slightly above the indicative target of IDR 17 trillion (approx. USD $1.26 billion).
Bank Indonesia's benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) depreciated 0.53 percent to IDR 13,398 per US dollar on Tuesday (30/01).
Indonesian Rupiah versus US Dollar (JISDOR):| Source: Bank Indonesia