Shares end down amid uncertainty<\/p>\n
Dow Jones, Jakarta<\/p>\n
Shares closed marginally lower on Monday as investors, mostly
\nforeigners, continued to offload their equity portfolio amid
\npolitical uncertainty ahead of the presidential runoff in
\nSeptember, dealers said.<\/p>\n
Gains in many regional markets failed to improve buying
\nsentiment, they said.<\/p>\n
\"The market is consolidating ahead of the September's event,\"
\nsaid a trader with Paramitra Securities.<\/p>\n
The Jakarta Stock Exchange Composite index was down 1.101
\npoints, or 0.2 percent, at 749.371.<\/p>\n
Decliners led gainers 65 to 35, with 89 stocks unchanged.
\nVolume was 495 million shares valued at Rp 447 billion.<\/p>\n
Consumer goods producer Unilever Indonesia led the decliners,
\nfalling Rp 75, or 2.1 percent, to Rp 3,550 on talks that the
\ncompany would issue rights shares.<\/p>\n
Bellwether Telekomunikasi Indonesia ended down Rp 50, or 0.7
\npercent, at Rp 7,650, and Indonesian Satellite Corp. fell Rp 50,
\nor 1.2 percent, to Rp 4,075 on profit taking.<\/p>\n
Dealers said ongoing worries that the central bank may raise
\ninterest rate kept sentiment in select bank blue chips weak. Bank
\nMandiri dropped Rp 25, or 2 percent, to Rp 1,200, and Bank Rakyat
\nshed Rp 25, or 1.5 percent, to Rp 1,650.<\/p>\n
Bank Negara Indonesia, however, jumped Rp 100, or 9.3 percent,
\nto Rp 1,175 on hopes that the government will proceed with the
\nsale of its stake in the bank by the fourth quarter of this year.<\/p>\n
Cement maker Semen Gresik rose Rp 250, or 2.6 percent, to Rp
\n9,750 on bargain hunting and expectations that the company will
\ncomplete its 2002 and 2003 financial audit by October.<\/p>\n
Dealers said they expect the market to trade lower Tuesday on
\nfurther selling in blue chips.<\/p>\n
Meanwhile, the rupiah ended lower in quiet trading Monday as
\nlocal companies bought the dollar to pay offshore debts maturing
\nat the end of the month, dealers said.<\/p>\n
The dollar finished at Rp 9,265, up from its close at 9,240
\nFriday.<\/p>\n
Local companies are saddled by offshore borrowings, which are
\nestimated at US$60 billion. Payment of maturing debts frequently
\ndogs the local unit.<\/p>\n
Dealers said that the dollar's slide in the previous two
\nsessions had provided good levels for local companies to
\naccumulate the unit, dealers said.<\/p>\n
The dollar fell to an intraday low of Rp 9,210 Friday as
\nforeigners bought the rupiah to take part in a government bond
\nauction Tuesday.<\/p>\n
The government hopes to raise Rp 2 trillion to help narrow the
\nstate budget deficit.<\/p>\n
\"Dollar offer from foreigners evaporated Monday,\" one dealer
\nsaid.<\/p>\n
Dealers expect the dollar to test higher Tuesday as more local
\ncompanies are expected to buy the currency.<\/p>\n
Dealers expect the dollar to trade between 9,250 and 9,300
\nTuesday.<\/p>",
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"sponsor": "Okusi Associates",
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