Local share prices plunge by 3.5 percent<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nplunged amid selling pressure from foreign investors, with the
\nbenchmark composite index losing 3.5 percent to close at 529.20
\nin active trading.<\/p>\n
Securities analysts said many investors sold their stocks due
\nto uncertainty in the country's political and economic fronts,
\nand fears over the possible increase in interest rates in the
\nUnited States.<\/p>\n
\"The sharp drop in the rupiah during the day also caused a
\npanic selling, giving more pressure to the already weak market,\"
\na securities dealer said.<\/p>\n
Rupiah plunged steeply Thursday from Wednesday's late trade
\nrate of 8,200-8,210 against the dollar to 8,345-8,355 in late
\ntrading.<\/p>\n
The analysts said that if the U.S. Federal Reserve raised the
\ninterest rate 0.50 percentage point as estimated next week,
\ninvesting in the Indonesian equity market would certainly no
\nlonger be as attractive, especially when the investment risk is
\nhigh.<\/p>\n
Other Asian stock markets also lumped on Thursday, sparked off
\nby recent declines on the U.S. markets, the Associated Press
\nreported.<\/p>\n
In Japan, the benchmark 225-issue Nikkei Stock Average plunged
\n819.01 points, or 4.63 percent, to 16,882.46 points. On
\nWednesday, the index lost 143.07 points, or 0.80 percent.<\/p>\n
Foreign investors, particularly U.S. funds, were dumping
\nJapanese stocks to raise cash following losses on Wall Street
\nWednesday, traders said.<\/p>\n
The Dow Jones industrial average fell 168.97 points to
\n10,367.78 points. The technology-heavy Nasdaq composite index
\nclosed at 3,384.73 points, down 200.28 points.<\/p>\n
In currency trading, the U.S. dollar was quoted at 109.92
\nJapanese yen on late Thursday, up 0.56 yen from late Wednesday in
\nTokyo and also above its late New York level of 109.39 yen on
\nWednesday.<\/p>\n
In Singapore, the Straits Times Index fell 53.50 points, or
\n2.6 percent, to 2,003.72, following declines on Wall Street.<\/p>\n
In New Zealand, the NZSE-40 capital index fell for a third
\nday, ending down 11.49 points, or 0.6 percent, to 2,020.82.
\nAustralia's All Ordinaries Index fell 45.00 points, or 1.5
\npercent, to 2,966.8.<\/p>\n
In Bangkok, Thai shares fell to a 14-month low as investors
\nsold banking and communications stocks, amid weakening regional
\nand U.S. markets, traders said.<\/p>\n
The SET Composite Index shed 6.99 points, or 2 percent, to
\n336.54, the lowest since March 11, 1999.<\/p>\n
The Hong Kong and South Korean markets were closed for a
\npublic holiday to mark the Buddha's birthday.<\/p>\n
In Taipei, Taiwanese shares tumbled to a new low this year as
\ninvestors sold technology stocks on news that Intel was supplying
\ndefective chipsets. The Weighted Stock Price Index fell 209.96
\npoints, or 2.5 percent, to 8,349.91, the lowest since Dec. 24.<\/p>\n
In Manila, Philippine shares fell to an 18-month low, as a
\nweakening peso, concerns over a U.S. interest rate increase, and
\nthe ongoing fighting between military troops and Muslim rebels in
\nthe south hurt investor confidence. The Philippine Stock Exchange
\nIndex fell 17.75 points, or 1.2 percent, to 1,505.21.<\/p>\n
In Kuala Lumpur, Malaysian shares fell on declining regional
\nand U.S. markets. The Composite Index lost 11.76 points, or 1.3
\npercent, to 920.71.<\/p>",
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