Jakarta Stock Exchange ends lower, rupiah flat

Jakarta Stock Exchange ends lower, rupiah flat

Dow Jones, Jakarta

Indonesian shares ended slightly lower Wednesday as further profit-taking in telecommunications blue chips pushed the main index lower, dealers said.

Overall sentiment was cautious amid renewed concerns over protests by thousands of students from large universities in Jakarta, demanding that the government cancel recently- implemented tariff hikes.

Local reports said the students burned pictures of President Megawati Sukarnoputri during the demonstration at the presidential palace.

The Jakarta Stock Exchange Composite index ended down 0.4 percent, or 1.579 points, at 405.598.

Decliners led gainers 53 to 34, with 65 stocks unchanged.

Volume was 281 million shares valued at Rp 298 billion (US$33.5 million).

The government recently raised fuel prices between 3 percent and 23 percent, telecommunications tariffs by an average 15 percent, and electricity tariffs by 6 percent.

Bellwether Telekomunikasi Indonesia ended down 2 percent, or Rp 75, at Rp 3,625 on profit-taking after rising 2.8 percent Tuesday. Dealers also attributed the selling in Telkom to renewed speculation that the government will cancel the increase in telecommunications tariffs due to growing opposition to the move.

Profit-taking also hit Indonesian Satellite, which fell 1.2 percent, or Rp 100, to Rp 8,400 after rising 3 percent Tuesday.

Shares of retail companies succumbed to selling pressure on expectations the recent tariff and price hikes will hurt sales this year.

Retailer Ramayana Lestari Sentosa lost 1.1 percent, or Rp 25, to Rp 2,350 and Hero Supermarket was down 2.4 percent, or Rp 25, at Rp 1,000.

Car maker Astra International bucked the trend, rising 2.2 percent, or Rp 50, to Rp 2,375 on growing expectations the company's performance will be better this year after it signed a $850-million debt deal late last year.

The rupiah ended flat for the second day in a row Wednesday as dollar short covering erased all of the rupiah's earlier gains, dealers said.

The dollar closed unchanged at 8,875 rupiah after trading between Rp 8,860 and Rp 8,880 earlier in the day.

Dealers said that offshore banks sold the dollar in the morning session, but later bought the unit back on the dollar's rise against several other regional currencies.

Dealers said that the market is still unfazed by intensifying protests against the recent hikes in fuel prices and utility charges.

"Intensifying protests for sure will make the market cautious, but the market won't panic as long as they are still under control," said a dealer with a foreign bank in Jakarta.

Dealers expect the dollar to trade between Rp 8,860 and Rp 8,880 Thursday.