Follow Wall Street, IHSG tends Weakens

Composite Stock Price Index in the Indonesia Stock Exchange today, Monday (4/16/2012), is expected to weaken. Attenuation is in line with the decline in stock indices on Wall Street last weekend.

Indovest Universe analysts in a note to mention, the tendency of IHSG continued weakening trend seen from some of the technical indicators are declining.

Stock plummeted on Wall Street is again closed trading last Friday with the Dow Jones index dropped 136.99 points, or 1.05 percent, the S & P 500 fell 1.25 percent and the Nasdaq fell 1.45 percent. This brings the U.S. stock indexes scored the worst in a year weakening this week.

Attenuation index was triggered by news from Europe and China. Spanish banks are known to borrow heavily from the European Central Bank (ECB), which reflects the difficulty of the bank looking for funding, while China's economic growth slowed in the first quarter reported. However, market participants believe there will be a continued loose monetary policy to boost growth.

Of economic data, consumer sentiment fell in March. Shares of banks like Bank of America and JP Morgan led the attenuation. European bourses closed lower on economic worries hit by euro zone countries, especially in Spain and Italy and also respond to the decline in U.S. consumer sentiment data. FTSE index fell 1.03 percent.

Notes from eTrading mentioned, IHSG is expected to move mixed and tend to weaken following the global stock market movements in the range 4130-4193