Panic Hits Jakarta Stock Exchange
Thursday, 11 January, 2007 | 15:22 WIB

TEMPO Interactive, Jakarta: The Jakarta Stock Exchange (JSX) was shaken yesterday (01/10) since local and foreign investors kept offering their share portfolios in response to the financial market upheaval in Thailand and domestic negative sentiments.

As a result, the composite share price index at the JSX decreased by 70.514 (3.96 percent) to the level of 1.710,367.

There have been sharp declines every day during the last three day of trading so that the index at the JSX has decreased by 6.7 percent as of Monday (01/08).

The fall of the index yesterday (01/10) was the third largest decrease within the last year.

The index sharply decreasd by 96.238 points (6.3percent) and 83.945 points (6.03 percent) on 15 May and 22 May 2006, due to drops on the world's main stock exchanges.

According to one share dealer from a local security company, yesterday's share trading was dominated by orders to sell by foreign investors.

They are suspected of withdrawing their funds from Asia, including Indonesia, because the negative sentiments from Thailand worried them, and they were immediately followed by local investors.

“Sell, and sell. There was quite a panic,” said the share dealer yesterday (01/10).

On Tuesday (01/09), the financial market in Thailand was in trouble after the Thai government limited foreign ownership in local companies to under 50 percent.

Yuliawati, Muchtar Wijaya (PDAT), Padjar, Agus Supriyanto,