Share prices plunge as profit taking sweeps the market<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nplunged on Tuesday in active trading, ending a week-long buying
\nspree.<\/p>\n
Stockbrokers said most blue chip stocks fell sharply as
\njittery investors took profits amid fears of escalating political
\ntension following the bomb blast at Istiqlal Mosque in Jakarta on
\nMonday.<\/p>\n
The Composite Index, which breached the psychological 500
\nbarrier on Monday, fell 4.3 percent to end the day at 485.97.<\/p>\n
President B.J. Habibie and other political leaders condemned
\nthe bombing and asked people to remain calm. However, newspaper
\nreports said a mob attacked a Christian school complex in South
\nSulawesi.<\/p>\n
A senior analyst at state-owned securities company PT
\nDanareksa, however, played down the role of the bombing in
\nTuesday's stock market plunge.<\/p>\n
Danareksa asset management director Joseph Ginting said the
\nfall was due to profit taking, which often takes place following
\na large jump in share prices.<\/p>\n
\"Investors are tempted to quickly make a profit after the
\nindex surges the previous day. I see that short-term buying on
\nthe JSX has gained momentum during the country's political and
\neconomic uncertainties,\" Joseph said.<\/p>\n
He said foreign investors had renewed confidence in the local
\nstock market, leaving local investors behind.<\/p>\n
\"Recent buying on the JSX by foreign investors is a signal
\nthat they are stealing the start,\" he said.<\/p>\n
Joseph said the portion of shares bought by foreign investors
\nhad returned to above 50 percent from the 40 percent level.<\/p>\n
According to data, foreign investors' net buying as of March
\n31 had increased by 1.7 percent to US$1.52 billion compared to
\nlast year, he said.<\/p>\n
He attributed the more active foreign traders to the fact that
\nlocal traders failed to see the good fundamentals of the stock
\nmarket because of a lack of attention to the data.<\/p>\n
Joseph said the 10 percent increase to Rp 170 trillion in
\nmarket capitalization in the first quarter of the year reflected
\nan improved sentiment about the market.<\/p>\n
Other measures for the increase should also be taken into
\naccount, including the smooth start of the bank restructuring
\nprogram, the operation of the bankruptcy law and the
\nimplementation of the $2.4 billion Miyazawa Plan, as well as
\nadditional loan commitments by other international financial
\norganizations, Joseph said.<\/p>\n
Other Asian stock markets also paused for breath on Tuesday as
\ninvestors took profits after stretching a liquidity-driven
\nregional rally into the third week, dealers said.<\/p>\n
In Tokyo, share prices bounced back as investors bought on
\ndips in late trading after the market slipped following a decline
\non New York's technology-heavy Nasdaq index, brokers said.<\/p>\n
The Nikkei average of 225 leading issues closed 22.90 points
\nhigher, or 0.1 percent, at 16,697.11. But the Topix index of all
\nissues on the first section was still down 3.79 points at
\n1,328.90.<\/p>\n
In Hong Kong, stocks closed down 2.8 percent on profit taking
\nfollowing weakness on Wall Street and a key government land
\nauction.<\/p>\n
The blue chip Hang Seng Index ended down 356.66 points at
\n12,409.78.<\/p>\n
In Sydney, Australian share prices ended a five-day record-
\nbreaking run, easing 0.7 percent in line with a weaker Wall
\nStreet, brokers said.<\/p>\n
The Australian Stock Exchange's benchmark All Ordinaries Index
\nslipped 23.0 points to 3,090.1.<\/p>\n
In Kuala Lumpur, the composite index rose 6.11 points to
\nfinish at 621.53, off an earlier low of 609.92.<\/p>\n
In Bangkok, the Stock Exchange of Thailand (SET) main index
\nlost 6.08 points to close at 406.11 while the select SET-50 index
\nfell 0.54 points to 30.57.<\/p>\n
In Manila, the Philippines Stock Exchange composite index
\ngained 2.67 points to close at 2,358.65.<\/p>\n
In Seoul, the Korea Stock Exchange main index rose 3.84 points
\nto 770.43, off a high of 780.73 and a low of 759.81.<\/p>\n
In Taipei, the Taiwan Stock Exchange weighted price index
\nedged up 4.56 points to 7,627.74.<\/p>\n
In Shanghai, the Shanghai Stock Exchange's B-share index,
\nwhich tracks shares nominally reserved for foreigners, gained
\n0.14 points to close at 27.40. The A-share index of locally
\ntraded stocks ended up 12.96 points, or 1.1 percent, closing at
\n1,246.88.<\/p>\n
In Auckland, the NZSE-40 capital index closed down 20.77
\npoints at 2,192.04.<\/p>",
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