JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) dropped 2% to 4722 this mid day trading, led by banking and property stocks, as market sentiment was hit by concern over the US rate hike.
Reuters reported the U.S. Federal Reserve will probably end its massive bond-buying program this fall, and could start raising interest rates around six months later, quoting Fed Chair Janet Yellen.
In regional, Japan’s Nikkei, Hong Kong’s Hang Seng, and Australia’s All Ordinaries also fell more than 1%.
Banking stocks were hit, dropped more than 3%. Bank Rakyat Indonesia lost 3.05%, Bank Negara Indonesia fell 3.2%, Bank Mandiri shed 3.07%, and Bank Tabungan Negara dropped 5%.
Property stocks were also focus of selling. Alam Sutera lost 3.03%, Bumi Serpong Damai declined 2.35%, and Lippo Karawaci dropped 4.8%.