Jakarta down, other Asian stock markets close mixed

JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX) closed 1.8 percent lower yesterday, driven by a fall in large-cap shares as the bearish trend continued despite the government's apparent commitment to economic reforms.

The JSX Composite Index closed down 8.78 points at 491.85 on a total turnover of 491.85 million shares changing hands on the regular market worth Rp 500.64 billion (US$62.58 million).

Domestic telecommunications firm Telkom dropped Rp 175 to Rp 3,400, cigarette maker Gudang Garam was down Rp 75 to Rp 11,200 and competitor HM Sampoerna down by Rp 275 to Rp 5,750.

Stockbrokers said high interest rates offered by domestic banks had prompted investors to shift investment portfolios from equity to bank deposits.

"There is no reason for investors to place their funds in stocks while deposits in the banking system offer a higher yield," a broker with a joint venture securities firm said.

Most commercial banks raised their one-month deposit rates to as high as 52.5 percent after the central bank earlier this week raised its short-term promissory notes (SBI) rates for all maturities, with its one-month SBI rate rising to 50 percent.

Elsewhere in the region:

In Tokyo, stocks closed marginally higher in lackluster trading, the day before the government planned to release details of its latest attempt to revive Japan's faltering economy.

The benchmark Nikkei Stock Average of 225 selected issues gained 0.15 points, closing at 15,761.69.

"It's hard to take active positions now, as the direction of the market is unclear," said Futoshi Yoshimura, joint head of dealing at Schroders Japan's equity trading department.

Meanwhile, the U.S. dollar fell against the yen.

In late trading, the dollar bought 130.54 yen, down 0.18 yen from late Wednesday in Tokyo but above its late New York rate of 130.28 yen overnight.

In Hong Kong, share prices closed lower in quiet trading, dragged down by bearish sentiment in the futures market and an absence of positive local news.

The blue-chip Hang Seng Index closed down 0.5 percent at 10,918.94.

In Seoul, shares prices plunged on a selling spree, sparked by lingering labor disputes. The benchmark index fell 3.5 percent, closing at 416.54.

In Kuala Lumpur, Malaysian share prices rose on relief that a major bank acquisition deal had gone through.

The benchmark Kuala Lumpur Stock Exchange Composite Index finished 1.4 percent higher at 628.24.

In Bangkok, Thai stock prices closed lower on first-quarter losses reported by financial institutions.

The Stock Exchange of Thailand index lost 2.1 percent, closing at 427.41.

In Manila, Philippine shares ended higher as investors picked up blue-chip issues at bargain levels, traders said. The key index closed up 0.5 percent at 2,164.33.

In Taipei, Taiwan shares ended lower as investors headed back for the sidelines to wait for first-quarter earnings reports due later this month, traders said. The key index closed down 0.26 percent at 8,613.96.

In Australia, the key stock index finished higher on the back of higher gold and mining share prices. The index gained 21.0 points to 2,877.8.

In New Zealand, the key stock index finished at its lows, with brokers saying the market lacked direction. The index ended down 5.51 points at 2,314.45. (aly)