Stock prices at JSX end lower in moderate trading<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nclosed marginally lower yesterday in moderate trading as
\ninvestors took profits on the gains they made last week,
\nstockbrokers said.<\/p>\n
They said that the trading outlook on the local exchange was
\nbleak for the whole day because most investors remained cautious
\nwhile waiting for the conclusion of talks between the government
\nand the International Monetary Fund (IMF).<\/p>\n
\"Most investors do not want to take any position in the local
\nmarket,\" a broker with Trimegah Securindolestari said.<\/p>\n
Brokers said that most foreign brokerage firms, who had been
\nactive in the local exchange late last week, did not make any
\nsignificant transactions.<\/p>\n
They said that Jardine Fleming Nusantara, Indosuez WICarr
\nSecurities, ABN Amro, SBC Warburg Securities made heavy buying
\norders yesterday while GK GOh Ometraco, ING Barings and Merill
\nLynch Indonesia were on the selling side.<\/p>\n
\"I think some foreign investors are on the sidelines ahead of
\nthe end of the fiscal year on Tuesday,\" the Trimegah broker said.<\/p>\n
The financial market will be closed today to mark the end of
\nthe 1997\/1998 fiscal year.<\/p>\n
An analyst from Harita Securities Karman Pramurahardjo said
\nthat investors as well as brokers were anxiously waiting for the
\nannouncement of the results of talks between the IMF and the
\ngovernment to stabilize the ailing rupiah and to solve the
\nprivate sector debt and battered banking system crises.<\/p>\n
\"If the outcome of discussions between the IMF and the
\nIndonesian government addresses these three problems properly,
\ninvestors will see sign a recovery in the local market for a
\nwhile,\" he said.<\/p>\n
IMF officials, who are in Jakarta to review the implementation
\nof the economic reforms agreed in exchange for the IMF-led US$43
\nbillion package, said yesterday that discussions with the
\nIndonesian government were expected to be concluded this week.<\/p>\n
The IMF director for the Asia-Pacific region, Hubert Neiss,
\nsaid that discussions on monetary policy, which was one of the
\nlast major issues, should be completed today (Tuesday).<\/p>\n
The JSX Composite Index closed down 0.67 of a point to end at
\n541.42 points.<\/p>\n
Around 650 million shares valued at Rp 569 billion (US$66.16
\nmillion) changed hands on the regular market.<\/p>\n
Brokers said the sharp gains in second-tier stocks, especially
\nin the mining and banking sectors, in the afternoon session
\nprevented a greater drop in the price index even though blue chip
\nstocks like PT Telkom lost ground.<\/p>\n
Telkom shed Rp 125 to close at Rp 4,125 on 4.22 million shares
\ntraded, automaker PT Astra International fell Rp 75 to close at
\nRp 2,150 on 18 million shares changing hands and cigarette maker
\nHM Sampoerna dropped Rp 150 to Rp 7,850 on 3.30 million shares
\nchanging hands on the regular market.<\/p>\n
The bearish sentiment in the stock market also permeated into
\nthe currency market with the rupiah ending slightly lower against
\nthe U.S. dollar in thin trading yesterday, currency dealers said.<\/p>\n
They said the rupiah closed at 8,600 to the American dollar
\nyesterday, 2 percent weaker than its close at 8,400 on Friday
\nlast week.<\/p>\n
As with the stock market, dealers said the currency market was
\nwaiting for news from the meeting between the IMF and the
\ngovernment. (aly)<\/p>",
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