JAKARTA, NNC - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) on Thursday (10/18/2018) opened lower due to US-China relations.
JCI opened down 18.49 points or 0.32 percent to 5,850.12. While the 45 leading stocks or the LQ45 index moved down 4.60 points or 0.50 percent to 924.04.
Head of Research at Valbury Sekuritas, Alfiansyah in Jakarta on Thursday said the continued deteriorating relationship between the United States and China is one of the hurdles for global stock markets, including the JCI.
"In addition to trade competition, it also paves the way for increased conflict in many fields including the control of security by the US in the South China sea region," he said.
Nevertheless, he said, the publication season of the company's earnings report for the third quarter of 2018 is at least expected to still be able to hold the JCI from weakening.
He continued, positive sentiment also came from a budget deficit that was estimated to be smaller than two percent per gross domestic product (GDP) which was in the range of 1.83-2.04 percent.
"The shrinking budget deficit will help reduce the loan burden and strengthen the rupiah exchange rate which ultimately has a positive impact on the stock market," he said, as quoted by Antara.
Regional exchanges, including the Nikkei Index fell 96.89 points (0.42 percent) to 22,744.22, the Hang Seng Index fell 6.58 points (0.03 percent) to 25,455.68, and the Straits Times Index weakened 19.41 points (0.63 percent) to 3,051.69.