Jakarta shares down on oil prices

Jakarta shares down on oil prices

Agencies, Jakarta

Indonesian stocks fell for the first day in three on Tuesday on concern record-high oil prices will slow economic growth and corporate profits. PT Telekomunikasi Indonesia led declines.

PT Semen Gresik led a slide among cement makers on concern record oil prices will push up costs and hurt profits.

The Jakarta Composite Index shed 10.951, or 1.3 percent, to 849.193. The index rose 1.2 percent in the previous two days.

Decliners led gainers 91 to 55, while 80 stocks were unchanged. Volume was 2.05 billion shares valued at Rp 1.1 trillion.

"If oil prices keep hitting new records the global economy will be hurt and Indonesia's growth target will be at risk," said Budi Budar, who helps manage the equivalent of US$16 million for Samuel Asset Management in Jakarta. "Cement makers will be harder hit with the rise in energy prices because it directly affects their production costs.

Telekomunikasi, the country's biggest publicly traded company, fell Rp 75, or 1.7 percent, to Rp 4,275. PT Gudang Garam, the nation's biggest cigarette maker, fell Rp 200, or 1.5 percent, to Rp 12,750.

Semen Gresik, Indonesia's biggest cement maker by volume, fell Rp 400, or 3.5 percent, to Rp 11,200. PT Semen Cibinong, the country's third-biggest cement maker, fell Rp 10, or 2.4 percent, to Rp 405. Energy costs typically account for about 30 percent to 40 percent of Indonesian cement makers' production costs, Gresik said earlier.

PT Astra International, the nation's biggest auto distributor, rose Rp 150, or 1.94 percent, to Rp 7,900 after Mandiri Sekuritas recommended investors buy the stock on expectations that the company's plan to buy 25.5 percent of PT Bank Permata, the country's seventh-largest lender, will boost profit next year.

PT International Nickel Indonesia, a unit of Canada's Inco Ltd., dropped Rp 650 rupiah, or 5.2 percent, to Rp 11,850.

On the currency market, the rupiah weakened as local companies bought the dollar, probably to settle import bills, dealers said.

The rupiah closed at 9,135 per dollar, down from its close on Monday at 9,080.

Dealers said that state-owned banks were active dollar bidders, likely on behalf of other state-owned companies, which needed more dollars to pay for rising fuel import bills.

Some offshore market participants, too, bought back the dollar amid healthy demand for the currency from local companies, dealers said.

Dealers expect the rupiah to trade between 9,000 and 9,150 a dollar on Wednesday.