Jakarta shares end down due to profit-taking

Jakarta shares end down due to profit-taking

Dow Jones, Jakarta

Indonesian shares ended lower Wednesday as investors took
profit in many blue chips that gained in the five previous
sessions, dealers said.

They said losses in several Asian markets amid renewed
concerns over rising oil prices discouraged investors and hurt
overall sentiment.

"The market ran out of steam after recent sharp gains," said a
trader with Paramitra Securities.

The Jakarta Stock Exchange Composite index ended down 5.258
points, or 0.6 percent, at 856.060. The main index rose 6 percent
in the five previous sessions on expectations that the new
government will be able to restore investor confidence in the
country.

Decliners led gainers 72 to 60, with 87 stocks unchanged.

Volume was 2.6 billion shares valued at Rp 1 trillion.

Cigarette maker Hanjaya Mandala Sampoerna led decliners, down
3.9 percent at Rp 6,100 on profit-taking after gaining 12 percent
in the eight previous sessions. Sampoerna's rival Gudang Garam
ended down 0.4 percent at Rp 13,050.

Profit-taking also hit shares of bellwether Telekomunikasi
Indonesia, down 2.3 percent at Rp 4,300, and Indonesian Satellite
Corp., down 0.6 percent at Rp 4,400.

Bank Mandiri fell 1.6 percent to Rp 1,600 and Bank Rakyat lost
2.3 percent to Rp 2,150.

However, oil producer Medco Energi rose 3 percent to Rp 1,725
on expectations that higher oil prices would boost the company's
earnings.

Dealers said they expect the market Thursday to trade lower on
further profit-taking in select blue chips.

Meanwhile, the rupiah ended slightly lower as rising oil
prices hurt sentiment on the local unit, dealers said.

The dollar closed at Rp 9,105, up from its close Tuesday at Rp
9,090.

Dealers said that large state-owned banks were the main dollar
buyers and were likely buying up on behalf of local companies.
These local companies need to pay for rising fuel imports bills
amid galloping oil prices, dealers said.

Higher oil prices will also boost fuel subsidies in the state
budget and will further limit the government's ability to finance
development projects, dealers said.

The dollar's rise was, however, capped by foreign investors'
purchase of the rupiah for settlement of their stock trades in
the previous sessions, dealers said.

"The capital inflows linked to the stock market helped the
rupiah weather the selling pressure," one dealer said.

Dealers expect the dollar to trade between Rp 9,080 and
Rp 9,130 Thursday.