JP/14/market

JP/14/market

RI shares end down weak rupiah, Asian market falls

Dow Jones
Jakarta

Indonesian shares ended lower on Wednesday as investors who
were worried that the rupiah would continue to weaken against the
dollar, took profit in stocks that gained in the previous two
sessions, dealers said.

They said falls in many Asian markets also added to negative
sentiment, putting more pressure on investors to sell their
shares.

"The market ran out of steam," said a trader with BNI
Securities.

The Jakarta Stock Exchange Composite Index ended down 7.190
points, or 0.7 percent, at 979.220. The main index rose 0.5
percent on Monday and Tuesday.

The rupiah ended at an 11-week low at Rp 9,190 to the dollar,
compared with Rp 9,090 at Tuesday's close as local companies
continued to buy the greenback to pay their offshore obligations
by the end of the year.

Decliners led gainers 81 to 39, with 98 stocks unchanged.

Volume was 3.9 billion shares valued at Rp 2.8 trillion,
compared with 1.35 billion shares valued at Rp 1.1 trillion on
Tuesday.

Cigarette maker Hanjaya Mandala Putra was among the decliners,
closing down 2.2 percent at Rp 6,650 on profit-taking.
Sampoerna's rival Gudang Garam fell 1.1 percent to Rp 13,250.

Profit-taking also hit shares in Bank Negara Indonesia, the
nation's third-largest lender, which dropped 3 percent to
Rp 1,550, and bellwether Telekomunikasi Indonesia, which shed 1
percent to Rp 5,050.

Shares in Bank Permata plunged 30 percent to Rp 825, after the
government on Tuesday said it sold a 20 percent stake in the bank
at Rp 750 a share, defying investors' expectations that the
government would sell shares in the nation's sixth-largest lender
at the market price.

Indonesian Satellite, the nation's second-largest
telecommunications, and carmaker Astra International, however,
maintained their gains on expectations of higher 2004 earnings.

Indosat rose 1.7 percent to Rp 5,850 and Astra International
gained 2.6 percent to Rp 9,850.

Dealers said they expect the market on Thursday to trade lower
on a further price correction.

Elsewhere in Asia, Asian stock markets closed mixed, but Tokyo
stocks rebounded following decline in the past two sessions.

Tokyo's Nikkei Stock Average of 225 issues rose 67.37 points,
or 0.62 percent, to close at 10,941.37. On Tuesday, the Nikkei
shed 108.33 points, or 0.99 percent.

In Hong Kong, stocks fell as investors sold a broad range of
blue chips on worries that the listing of a government real
estate investment trust may be delayed.

The Hang Seng Index lost 213.46 points, or 1.5 percent, to
finish at 14,022.32. On Tuesday, the Hang Seng shed 21.08 points,
or 0.14 percent.

Thai shares ended 1.6 percent lower as investors sold banking
and telecom stocks. The Stock Exchange of Thailand Index sank
10.42 points to 645.41.

Malaysian shares dipped as speculation that the government
might abandon the peg between the U.S. dollar and the Malaysian
ringgit dwindled. The weighted Composite Index of 100 blue chips
fell 10.11 points, or 1.1 percent, to 902.30.

Philippine shares advanced marginally, after buying in select
blue chips outweighed losses by telecom issues. The 30-company
Philippine Stock Exchange Index ended up 2.10 points, or 0.1
percent, at 1,801.18.

South Korean shares rose as the U.S. dollar strengthened
against the Korean currency, the won, easing concerns over the
country's export-dependent economy. The Korea Composite Stock
Price Index, or Kospi, added 10.67 points, or 1.2 percent, to
871.74.

Singapore's share prices ended slightly higher as buyers
snapped up blue chips early in the session but later took
profits, erasing most gains. The Straits Times Index rose 4.40
points, or 0.2 percent, to 2,020.66.

Australian shares slipped on losses by resources issues after
the prices of oil, copper and gold fell in the U.S. on Tuesday.
The S&P/ASX 200 index fell for a second straight day, closing
down 29.80 points, or 0.8 percent, to 3,897.70.

Taiwan's shares declined as investors remain cautious ahead of
Saturday's legislative elections, with technology stocks among
the worst performers. The weighted price index dropped 32.77
points, or 0.6 percent, to 5,892.51.

New Zealand shares declined as investors sold a broad range of
blue chips, tracking weakness on Wall Street and in Australia.
The NZSX-50 lost 19.74 points, or 0.7 percent, to 2,991.15.