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Jakarta Post

Prices plunge as investors cautious on Bernanke’s speech

  • Mariel Grazella

    The Jakarta Post

Jakarta   /   Fri, August 31 2012   /  09:54 am

Share prices on the Indonesia Stock Exchange (IDX) continued to spiral downward on Thursday under adverse regional sentiments stirred by speculation that the US Federal Reserve would refrain from a stimulus to catalyze the economy.

The Jakarta Composite Index (JCI) slid nearly 1.7 percent to 4025.58 at the close of the trading, recording the sharpest loss since July 23 and the largest decline in Asia in the day.

Reza Priambada, an analyst at PT Indosurya Asset Management, attributed the index’s deep dive to “the response of traders to negative sentiments in the Asian markets”.

 “The Asian markets have adopted a wait-and-see approach as the Fed convenes with all central bank governors at the end of this week,” Reza added.

US Federal chairman Ben Bernanke will preside over an economic symposium in Jackson Hole, Wyoming, on Friday. He is expected t...