Mon, 20 Jun 2011

TEMPO Interactive, Jakarta:The global stock market collapse of 2008 coupled with huge state debts in Greece and Ireland has led to volatility in the global capital market.

The composite stock price index (IHSG) on the Indonesia Stock Exchange (IDX) during yesterday’s trade moved from 53.78 points (1.42 percent) to 3,740.471 - the biggest index drawback since May 24. The rupiah also fell 50 points (0.58 percent) to 8,598 per US dollar.

Julio Parningotan, an analyst from PT Batavia Prosperindo Sekuritas, said that Friday’s index may fall further amid the negative sentiment.

Julio predicted that the index would float within the range of 3,700 and 3,770. If the index reaches 3,740, there is a possibility it will slump further to 3,670.

“At this point, investors should be careful and wait. If they have made gains, they should realize it immediately because the market is not conducive,” said Julio.