Jakarta shares down as Telkom, Indosat fall<\/p>\n
Dow Jones
\nJakarta<\/p>\n
Jakarta shares ended lower on Thursday led by selling in
\nTelekomunikasi Indonesia and Indonesian Satellite, with losses in
\nmost Asian markets hurting overall sentiment, dealers said.<\/p>\n
They added that the market took a break, after gains in the
\nprevious two sessions, because of lingering worries that the
\ncentral bank will increase its key interest rate to fight rising
\ninflation.<\/p>\n
"Selling occurred almost across the board," said a trader with
\na local securities firm.<\/p>\n
The Jakarta Stock Exchange Composite Index ended down 8.231
\npoints, or 0.7 percent, at 1108.44.<\/p>\n
Decliners led gainers 111 to 28, with 62 stocks unchanged.<\/p>\n
Volume was 1.35 billion shares valued at Rp 1.20 trillion,
\ncompared with 1.65 billion shares valued at Rp 1.60 trillion on
\nWednesday.<\/p>\n
Bellwether Telekomunikasi Indonesia led decliners, falling 1.1
\npercent to end at Rp 4,675 after its American Depositary Receipts
\nfell 0.8 percent on Wednesday.<\/p>\n
Telkom's rival Indosat also tracked a fall in its ADRs,
\ndropping 1 percent to Rp 4,950 after its ADRs shed 1 percent.<\/p>\n
Dealers said falls in telecommunication blue chips spurred
\ninvestors to sell some other blue chips.<\/p>\n
Nickel miner International Nickel Indonesia dropped 1.7
\npercent to Rp 14,550 and gold and nickel miner Aneka Tambang lost
\n2 percent to Rp 2,400.<\/p>\n
Bucking the trend was Bank Mandiri, which rose 0.6 percent to
\nRp 1,730 on a rebound after recent falls.<\/p>\n
Dealers said they expect the market to trade lower on Friday
\non further selling in telecom and mining blue chips.<\/p>\n
Meanwhile, the rupiah weakened following a slide in the local
\nstock market and the dollar's rebound against the yen, dealers
\nsaid.<\/p>\n
The dollar closed at Rp 9,503, up from its close on Wednesday
\nat Rp 9,485.<\/p>\n
"Foreign market players bought back the dollar likely because
\nof the slide in the local stock market," a dealer with a foreign
\nbank said.<\/p>\n
Dealers said market players also speculated on a rise in
\ndollar demand from state-owned oil and gas company Pertamina in
\nthe coming days, after it received Rp 4 trillion in cash from the
\ngovernment earlier this week to import petroleum products.<\/p>\n
The market appeared to ignore the central bank's statement
\nlate on Wednesday that Indonesia is expected to have net foreign
\nexchange supplies of $6.9 billion this year.<\/p>\n
It said the government is expected to receive $7.5 billion in
\nnet foreign exchange supplies, while foreign exchange demand from
\nlocal companies is estimated to reach $595 million.<\/p>\n
"The market ignored the projection of the huge net foreign
\nexchange surplus this year as most of the foreign exchange supply
\nis expected to come later this year," a dealer with a local bank
\nsaid.<\/p>\n
Dealers expect the dollar to trade between Rp 9,490 and Rp
\n9,540 on Friday.<\/p>",
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"sponsor": "Okusi Associates",
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