Shares end down, led by profit-taking in Telkom<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended lower on Monday led by profit-taking in
\nTelekomunikasi Indonesia and many bank blue chips after the main
\nindex hit a record high in the previous session, dealers said.<\/p>\n
They said overall sentiment was weak, hit by renewed fears
\nthat the central bank will raise interest rates to combat
\ninflation stemming from higher fuel prices.<\/p>\n
The government has said it plan to increase fuel prices later
\nthis year to reduce the 2005 budget deficit.<\/p>\n
\"These negative factors are a good excuse for investors to
\ntake profit,\" said a trader with a local securities firm.<\/p>\n
The Jakarta Stock Exchange Composite Index ended down 17.05
\npoints, or 1.7 percent, at 1,015.478. The main index had
\npreviously risen 3.2 percent since the start of the year.<\/p>\n
Decliners led gainers 109 to 29, with 55 stocks unchanged.<\/p>\n
Volume was 2.17 billion shares valued at Rp 1.8 trillion,
\ncompared with 2.6 billion shares valued at Rp 2.2 trillion on
\nFriday.<\/p>\n
Telekomunikasi Indonesia (Telkom) fell 3.4 percent to Rp 4,950
\non profit-taking after rising 6.2 percent last week.<\/p>\n
Telkom's rival Indonesian Satellite (Indosat) dropped 3.9
\npercent to Rp 6,150, also on profit-taking.<\/p>\n
Bank Mandiri, the nation's largest lender, fell 3.8 percent to
\nRp 1,925, Bank Danamon lost 1.7 percent to Rp 4,250, and Bank
\nCentral Asia ended 4.2 percent lower at Rp 2,825.<\/p>\n
Dealers also attributed selling in bank shares to expectations
\nthat they will be the hardest hit by the tsunami disaster among
\nlisted companies.<\/p>\n
The central bank has predicted that at least half of the Rp 4
\ntrillion in total bank loans in Aceh are irrecoverable.<\/p>\n
Shares in cigarette blue chips, however, bucked the trend on
\nexpectations of higher 2004 earnings.<\/p>\n
Cigarette maker Gudang Garam gained 1.4 percent to Rp 14,150,
\nand rival Hanjaya Mandala Sampoerna added 0.7 percent to Rp
\n7,000. The cigarette companies are expected to announce their
\nearnings early next month.<\/p>\n
Dealers said they expect the market on Tuesday to trade lower
\non further profit-taking in telecommunication and bank blue
\nchips.<\/p>\n
Meanwhile, the rupiah closed lower on dollar demand from local
\nimporters, dealers said.<\/p>\n
The rupiah closed at 9,295 per dollar, weakened from its close
\non Friday at 9,285.<\/p>\n
\"Dollar demand from local companies was quite healthy today,\"
\na dealer said.<\/p>\n
Still, the dollar failed to rise further due to humanitarian
\nfund inflows into the country related to the recent tsunami
\ndisaster, dealers said.<\/p>\n
The rupiah was also supported by capital inflows into the
\nstock market, as foreign investors settled their purchases of
\nIndonesian stocks last week.<\/p>\n
\"The capital inflows prevented the rupiah from losing much
\nfurther ground,\" another dealer with a foreign bank said.<\/p>\n
Dealers expect the rupiah to trade between 9,285 and 9,325 per
\ndollar on Tuesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-end-down-led-by-profit-taking-in-telkom-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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