JSX falls further on concerns over prive hike<\/p>\n
Dow Jones, Jakarta<\/p>\n
Shares at the Jakarta Stock Exchange ended lower Friday as
\nfuel price, telephone and electricity tariff hikes continued
\ndampening market sentiments and late selling in cigarette and
\nbanking blue chips erased earlier gains, dealers said.<\/p>\n
Gains across the region after Wall Street's rally overnight
\nfailed to improve broader sentiment on the local bourse, they
\nadded.<\/p>\n
The Jakarta Stock Exchange Composite Index ended down 0.4
\npercent, or 1.613 points, at 407.512, off a high of 412.011.<\/p>\n
Decliners led gainers 49 to 36, with 59 stocks unchanged.<\/p>\n
Volume was thin at 156 million shares valued at Rp 187 billion
\n(US$20.9 million).<\/p>\n
Thursday, the Dow Jones Industrial Average climbed 3.2
\npercent, while the Nasdaq rose 3.7 percent.<\/p>\n
Dealers said lingering worries over more demonstrations
\nagainst the government's decision to raise electricity and
\ntelecommunications tariffs and fuel prices discouraged investors
\nfrom taking firm buying positions.<\/p>\n
Local reports said Friday that around 400 protesters from
\nseveral non-governmental organizations staged demonstration in
\nsouth Sumatra, demanding the government cancel the price hikes.<\/p>\n
On Thursday, the first trading day of the year, the Composite
\nIndex fell 3.7 percent or 15.820 percent at 409.125 on the price
\nand tariff increases. It was the largest drop in a single day
\nsince the Oct. 12 Bali bombing. The index plunged 10.35 percent
\nto the four-year low of 337.48 on the next trading day after the
\nBali tragedy.<\/p>\n
Analysts said the increases in tariffs and prices will hurt
\nthe revenue of many companies in the country this year.<\/p>\n
On Friday, cigarette maker HM Sampoerna fell 4.4 percent, or
\nRp 150, to Rp 3,300, and its rival Gudang Garam lost 0.6 percent,
\nor Rp 50, to Rp 7,850.<\/p>\n
Heavyweight Bank Central Asia fell 2.2 percent, or Rp 50, to
\nRp 2,275 on further profit-taking after recent gains.<\/p>\n
Retailer Matahari Putra Prima lost 2.1 percent, or Rp 10, to
\nRp 465 on fears the company's sales this year would be hit by a
\nslowing of consumer spending after the tariff and price hikes.<\/p>\n
But shares in car maker Astra International rose 7.7 percent,
\nor Rp 225, to Rp 3,150 on a rebound after falling 16 percent in
\nthe past two trading sessions.<\/p>\n
The Indonesian rupiah ended steady after a range-bound session
\nFriday due to a lack of fresh incentives to move the market,
\ndealers said.<\/p>\n
The dollar ended at 8,920 rupiah, a touch higher from its
\nclose Thursday at Rp 8,915. Trading volume remained thin as most
\nmarket participants are away on holiday until the end of the
\nweek.<\/p>\n
Dealers said the market couldn't find a compelling reason to
\ndrive the dollar above Rp 8,950. Consequently, Bank Indonesia
\nchose to stay on the sidelines Friday after actively intervening
\nto defend the local currency Thursday.<\/p>\n
\"The best strategy is range-bound trading amid a lack of fresh
\nincentives,\" said a dealer with a foreign bank in Jakarta.<\/p>\n
Some analysts are bullish about the dollar over the medium
\nterm, citing political tensions that will likely worsen in the
\nsecond half of 2002 ahead of elections next year. But dealers
\nsaid that it's still too early to build excessive long-dollar
\npositions.<\/p>\n
Dealers said they expect the dollar to trade between Rp 8,900
\nand Rp 8,950 Monday.<\/p>",
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"sponsor": "Okusi Associates",
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