Stocks down amid street protests<\/p>\n
Agencies, Jakarta<\/p>\n
Shares ended lower Monday on selling across the blue-chip
\nboard, and were weighed down by concerns about street protests
\nagainst the recent hikes of fuel prices, and electricity and
\ntelecommunications tariffs, dealers said.<\/p>\n
The Jakarta Stock Exchange Composite index ended down 2.3
\npercent, or 9.265 points, at 398.247, but up from an intraday low
\nof 393.897.<\/p>\n
Decliners led gainers 96 to 14, with 49 stocks unchanged.<\/p>\n
Volume was 292 million shares valued at Rp 357 billion
\n(US$40.11 million).<\/p>\n
Hundreds of students and other demonstrators held a
\ndemonstration on Monday demanding the government cancel the
\nhikes.<\/p>\n
The demonstrations may escalate on Thursday when workers and
\nmembers of the business community are expected to take part.<\/p>\n
\"Selling was strong,\" a trader with a foreign brokerage firm
\ntold Dow Jones, adding the market may fall further in coming days
\nif the demonstrations turn violent.<\/p>\n
The government raised fuel prices by up to 22 percent last
\nweek as part of a continuing effort to reduce costly fuel
\nsubsidies and contain the budget deficit.<\/p>\n
Panin Securities dealer Nico Suherman told AFP the sharp fall
\nin the benchmark index was mostly due to profit-taking after the
\nbroad-based gains made in December, although concern over the
\nutility tariff increases also added to the selling pressure.<\/p>\n
Nico said he expected gains in the next day or two as the
\nmarket was perceived as oversold following the losses of the past
\nthree trading days.<\/p>\n
Telecommunications blue chips were among the decliners.<\/p>\n
Telkom lost 4.7 percent, or Rp 175, to Rp 3,550, despite the
\ngovernment increasing telecommunications tariffs by an average of
\n15 percent on Jan. 2. Dealers said concerns the government may
\ncancel the telecommunications tariff hikes due to public
\nopposition has hurt sentiment toward these shares.<\/p>\n
Indosat dropped 5.1 percent, or Rp 450, to Rp 8,300 on
\nconcerns about possible further protests by its workers to oppose
\nthe recent sale of the government's 41.94 percent stake in
\nIndosat to Singapore Technologies Telemedia.<\/p>\n
Dealers said investors sold their shares in other blue chips
\non expectations they will book lower earnings due to a decline in
\nconsumer spending after the hikes in fuel prices and other
\ntariffs.<\/p>\n
Cigarette-maker Gudang Garam lost 3.8 percent, or Rp 300, at
\nRp 7,550 and cement-maker Semen Gresik fell 2 percent, or Rp 150,
\nto Rp 7,450.<\/p>\n
Dealers said selling was also on further profit-taking after
\nrecent gains due to year-end window-dressing.<\/p>\n
Meanwhile, the rupiah was slightly lower on Monday amid
\ndollar demand from corporations. Near the end of Asian trading
\nthe rupiah was quoted at Rp 8,935 per U.S. dollar, compared to Rp
\n8,915 late Friday.<\/p>\n
There were also some concerns in the financial market that the
\nstreet protests could get out of hand.<\/p>",
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