Shares lower on bird flu outbreak<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesian shares ended lower on Tuesday, weighed by worries over
\nthe bird flu outbreak's impact on the economy, dealers said.<\/p>\n
Analysts say if health conditions in the country worsen, it
\nmay discourage foreign investment and hurt the economy.<\/p>\n
\"Investors consolidated their positions, watching government
\nmoves to prevent the deadly virus from spreading,\" said a trader
\nwith Paramitra Securities.<\/p>\n
The Indonesian government imposed \"extraordinary\" measures on
\nTuesday to keep the avian influenza outbreak -- which has so far
\nkilled four people in Indonesia -- from spreading, including the
\nforced hospitalization of people who exhibit symptoms of the
\ndisease.<\/p>\n
In addition to the fatalities, six patients suspected of
\nhaving contracted the H5N1 strain of bird flu have been admitted
\nto Jakarta's infectious diseases hospital, officials said, two of
\nthem zoo employees.<\/p>\n
Bucking bullish sentiment on regional markets, the Jakarta
\nStock Exchange Composite index ended down 1 percent, or 11.000
\npoints, at 1055.591.<\/p>\n
Gainers led decliners 90 to 20, with 58 stocks unchanged.<\/p>\n
Volume was 932 million shares valued at Rp 1.0 trillion,
\ncompared with 550 million shares valued at Rp 941 billion on
\nMonday.<\/p>\n
Bellwether Telekomunikasi Indonesia (Telkom) fell 1.9 percent
\nto Rp 5,200 on profit taking after gaining 2.9 percent on Monday.
\nTelkom's rival Indonesian Satellite (Indosat) also lost 1.9
\npercent to end at Rp 5,200 also on profit taking after rising 3.9
\npercent on Monday.<\/p>\n
\"Concerns over the bird flu outbreak spurred profit taking in
\nmost blue chips,\" said another trader with a foreign securities
\nfirm.<\/p>\n
Shares in automotive company Astra International lost 2.5
\npercent to Rp 9,900 on expectations of lower 2005 sales, as a
\nresult of a government plan to increase fuel prices early next
\nmonth.<\/p>\n
Traders said investors continued to sell banking shares on
\nexpectations of poor 2005 earnings following a high interest
\nrate.<\/p>\n
Bank Mandiri, the nation's largest bank by assets, dropped 1.4
\npercent to Rp 1,390, while Bank Danamon fell 4.6 percent to Rp
\n4,125.<\/p>\n
Dealers said they expect shares to trade lower on Wednesday on
\nfurther selling in telecommunications and bank blue chips.<\/p>\n
Meanwhile, the rupiah closed lower on Tuesday as globally
\nrising oil prices gave market participants an excuse to buy the
\ndollar, dealers said.<\/p>\n
The dollar closed at Rp 10,195 versus its close on Monday at
\nRp 10,150.<\/p>\n
\"The oil price rise to around US$67 per barrel overnight from
\naround $63 on Friday gave players reason to buy the dollar,\" a
\ndealer with a local bank said. Rising oil prices aren't good for
\nthe rupiah as they increase Indonesia's fuel import bill.<\/p>\n
Dealers, however, said trading was smooth and quiet as the
\nmarket has long factored in global oil prices into the dollar-
\nrupiah levels.<\/p>\n
\"The market has been steady recently. It isn't surprising that
\npeople will use any news to move the market,\" a dealer with a
\nforeign bank said.<\/p>\n
Dealers added there were no signs that Bank Indonesia
\nintervened to limit the rupiah's losses.<\/p>\n
Meanwhile, the market ignored the new average dollar-rupiah
\nassumption the government and the parliament agreed to Tuesday to
\nbase the 2005 Budget. They agreed to revise the projection to Rp
\n9,800 from Rp 9,500 originally to better reflect the recent
\nfluctuations in the local currency.<\/p>\n
Dealers expect the dollar to trade between Rp 10,150 and Rp
\n10,200 on Wednesday.<\/p>",
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"sponsor": "Okusi Associates",
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