The index of the Indonesian Stock Exchange opened higher on Tuesday morning on positive external sentiment but the trend reversed in afternoon trading with big sales by foreign investors
The index sank 126.35 points to 4,622.59 points with index of 45 most liquid stocks falling 3.32 percent to 781.11 points.
"Foreign investors selling shares were the main cause of the sharp correction," chief researcher of Universal Broker Indonesia Satrio Utomo said.
Satrio said foreign investors could not be convinced by the government on better performance after the economic slowdown in the first half of the year.
They feared that the slowdown would continue as there was no progress made in the implementation of big projects .
Foreign net sell was recorded at Rp584.641 billion in Tuesday trade and there were 221.444 transactions with 4.26 billion shares worth Rp3.81 trillion changing hands.
Decliners outnumbered gainers by 252 to 60 with 92 shares flat.
Regional markets such as Hang Seng , Nikkei and Straits Times recorded a decline.(*)
Editor: Heru Purwanto
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