RI shares end lower, rupiah steady<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended down Friday led by selling in
\nIndonesian Satellite and Astra International, while rupiah ended
\nsteady, amid talk of central bank intervention to bolster the
\nrupiah in the face of dollar demand from corporates.<\/p>\n
They said overall sentiment was weak amid lingering concerns
\nabout a possible war in Iraq and an absence of fresh leads from
\nthe domestic economic front.<\/p>\n
The Jakarta Stock Exchange Composite index ended down 0.4
\npercent, or 1.427 points, at 405.343, up from a low of 402.569.<\/p>\n
Decliners led gainers 58 to 37, with 69 stocks unchanged.<\/p>\n
Volume was 312 million shares valued at Rp 250 billion
\n(US$28.4 million).<\/p>\n
Indonesian Satellite lost 2.5 percent, or Rp 200, to Rp 7,800
\non speculation that the company will issue rights to expand its
\nbusiness this year, and on growing expectations it will report
\nlower earnings for last year due to declining international
\ncalls.<\/p>\n
Telekomunikasi Indonesia lost 1.4 percent, or Rp 50, to Rp
\n3,500 on profit-taking after rising 0.7 percent Thursday.<\/p>\n
Car-maker Astra International dropped 4.1 percent, or Rp 100,
\nto Rp 2,350 on profit-taking after rising 4.3 percent recently.<\/p>\n
Dealers said investors also sold cigarette blue chips on
\nexpectations the companies will report lower earnings this year
\ndue to a decrease in purchasing power after recent tariff hikes.<\/p>\n
Cigarette-maker Gudang Garam lost 0.7 percent, or Rp 50, to Rp
\n7,450, and its rival, HM Sampoerna, was down 0.8 percent, or Rp
\n25, at Rp 3,300.<\/p>\n
"Selling in blue chips was almost across the board," said a
\ntrader with Danawitta Securities.<\/p>\n
He expects the main index next week may test the key support
\nlevel of 400 points.<\/p>\n
Meanwhile, the dollar closed at Rp 8,893, down just a touch
\nfrom its finish Thursday at Rp 8,895.<\/p>\n
Dealers said Bank Indonesia was suspected of selling dollars
\nvia state banks. The central bank has said it would intervene in
\nthe market to help the rupiah if necessary, although it doesn't
\nconfirm when it has actually done so.<\/p>\n
Local companies continued to buy dollars, possibly to hedge
\ndollar obligations maturing later this year, dealers said.
\nIndonesian firms, saddled by around $60 billion in foreign debts,
\nhave been buying dollars since last week when the U.S. unit slid
\nclose to Rp 8,880.<\/p>\n
Still, dealers said underlying sentiment toward the rupiah
\nremains positive as offshore participants are still attracted by
\nthe healthy differentials between rupiah and dollar rates.<\/p>\n
Indonesia seems to be growing more stable politically and that
\nhelps the rupiah too, dealers said.<\/p>\n
"The dollar will slide again once demand from local companies
\nevaporates," said a dealer with a foreign bank.<\/p>\n
Dealers expect the dollar to trade between Rp 8,880 and Rp
\n8,900 Monday.<\/p>",
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