Jakarta shares down on oil prices<\/p>\n
Agencies, Jakarta<\/p>\n
Indonesian stocks fell for the first day in three on Tuesday on
\nconcern record-high oil prices will slow economic growth and
\ncorporate profits. PT Telekomunikasi Indonesia led declines.<\/p>\n
PT Semen Gresik led a slide among cement makers on concern
\nrecord oil prices will push up costs and hurt profits.<\/p>\n
The Jakarta Composite Index shed 10.951, or 1.3 percent, to
\n849.193. The index rose 1.2 percent in the previous two days.<\/p>\n
Decliners led gainers 91 to 55, while 80 stocks were
\nunchanged. Volume was 2.05 billion shares valued at Rp 1.1
\ntrillion.<\/p>\n
\"If oil prices keep hitting new records the global economy
\nwill be hurt and Indonesia's growth target will be at risk,\" said
\nBudi Budar, who helps manage the equivalent of US$16 million for
\nSamuel Asset Management in Jakarta. \"Cement makers will be harder
\nhit with the rise in energy prices because it directly affects
\ntheir production costs.<\/p>\n
Telekomunikasi, the country's biggest publicly traded company,
\nfell Rp 75, or 1.7 percent, to Rp 4,275. PT Gudang Garam, the
\nnation's biggest cigarette maker, fell Rp 200, or 1.5 percent, to
\nRp 12,750.<\/p>\n
Semen Gresik, Indonesia's biggest cement maker by volume, fell
\nRp 400, or 3.5 percent, to Rp 11,200. PT Semen Cibinong, the
\ncountry's third-biggest cement maker, fell Rp 10, or 2.4 percent,
\nto Rp 405. Energy costs typically account for about 30 percent to
\n40 percent of Indonesian cement makers' production costs, Gresik
\nsaid earlier.<\/p>\n
PT Astra International, the nation's biggest auto distributor,
\nrose Rp 150, or 1.94 percent, to Rp 7,900 after Mandiri Sekuritas
\nrecommended investors buy the stock on expectations that the
\ncompany's plan to buy 25.5 percent of PT Bank Permata, the
\ncountry's seventh-largest lender, will boost profit next year.<\/p>\n
PT International Nickel Indonesia, a unit of Canada's Inco
\nLtd., dropped Rp 650 rupiah, or 5.2 percent, to Rp 11,850.<\/p>\n
On the currency market, the rupiah weakened as local companies
\nbought the dollar, probably to settle import bills, dealers said.<\/p>\n
The rupiah closed at 9,135 per dollar, down from its close on
\nMonday at 9,080.<\/p>\n
Dealers said that state-owned banks were active dollar
\nbidders, likely on behalf of other state-owned companies, which
\nneeded more dollars to pay for rising fuel import bills.<\/p>\n
Some offshore market participants, too, bought back the dollar
\namid healthy demand for the currency from local companies,
\ndealers said.<\/p>\n
Dealers expect the rupiah to trade between 9,000 and 9,150 a
\ndollar on Wednesday.<\/p>",
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