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Francezka Nangoy

Indonesian stocks fell on Wednesday, sending the benchmark index to a one-week low, as foreign investors sold shares amid concern that Europe’s debt woes will persist after Greece failed to strike an agreement with private bondholders.

The Jakarta Composite Index lost 30.98 points, or 0.8 percent, to close at 3,963.61, its lowest since Jan. 17. About 3.83 billion shares, worth more than Rp 3.44 trillion ($389 million), were traded on the Indonesia Stock Exchange (IDX). Decliners outnumbered gainers, 137 to 84.

Foreign investors sold Rp 310 billion more than they bought, the first day of net selling by foreign investors since Jan. 16.

“The JCI was affected by negative sentiment from European markets after private creditors, euro zone financial ministers and Greece faced a deadlock in their discussion on the Greek debt crisis,” said Reza Priyambada, an equity analyst with Indo Surya Asset Management.

Reza added that the JCI is in overbought territory, so investors were selling shares at lower prices, triggered by weak sentiment from the euro zone.

At the exchange, the consumer goods sector full the furthest of any industry. It fell 1.3 percent after a five-day rally in which gains of 3.6 percent were accumulated.

The mining sector fell 1.2 percent. Vale Indonesia, the nickel producer formerly known as International Nickel Indonesia, lost 2.7 percent to Rp 3,600. Bumi Resources, the largest coal miner by volume, declined by almost 3 percent to Rp 2,450.

Shares fell as the International Monetary Fund forecast on Tuesday a 14 percent drop this year in non-oil commodity prices, MNC Securities analyst Edwin Sebayang said.

The rupiah receded 0.4 percent to trade at 9,018 against the dollar.

Additional reporting from Bloomberg