JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) dropped 1.24% to 4386 one hour ahead of the market’s close.
Investors, disappointed to bank central’s decision to raise further BI Rate to 7.5%, higher since 2009, from previous 7.25%, opted to sell off local stocks.
BI also increased lending facility rate by 25 basis points to 7.50% and deposit facility rate by 25 bps to 5.75%.
Investors focused selling construction stocks, property, and banking. Among construction stocks, Adhi Karya fell 3.3%, Waskita Karya lost 3.7%, and Wijaka Karya dropped 3.3%.
For property stocks Pakuwon Jati dropped 5.26%, Alam Sutera fell 3.7%, and Lippo Karawaci declined 3.88%. Banking stocks; Bank Rakyat Indonesia lost 3.16% and Bank Mandiri slid 3.12%.