JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) lost 0.6% to 5342 at early afternoon trade due to political concerns.
Astra International lost 2.2%, Alam Sutera fell 2.36%, Bank Mandiri declined 1.05%, Kalbe Farma dropped 3.48%, Telkom shed 2.85%, and Garuda slashed 2.83%.
While regional markets gain with Japanese shares touching an eight-year high on Monday.
Investors in Jakarta bourse might opt to sell local stocks, with some locking in profits, after report said police Comr. Gen. Budi Gunawan won a pre-trial lawsuit against the Corruption Eradication Commission (KPK).
The South Jakarta District Court had ruled on Monday (Feb. 16) that KPK’s decision on naming the three-star general as graft suspect is illegitimate.
This political controversies would continue and affect the market sentiment.
While the regional legislative council (DPRD) of DKI Jakarta will also today make their decision, whether to purse the right of interpellation or inquiry against the governor Basuki Tjahaja Purnama (Ahok) after Jakarta’s 2015 budget proposal is rejected by home affair ministry.