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.