JP/18/Stock

JP/18/Stock

Shares end sharply lower

Indonesian shares ended sharply lower Wednesday as worries
grew that there would be more demonstrations in the capital if
the U.S. attacked Afghanistan, dealers said.

The JSX Composite Index fell two percent, or 8.069 points, to
401.018. However, it was up from its intraday low of 397.558, the
lowest intraday low since June 11.

Decliners led gainers 127 to 14, with 56 stocks unchanged.
Volume was relatively light at 357 million shares valued at Rp
307 billion.

Wednesday, militant groups in several big Indonesian cities
demonstrated, demanding the U.S. not attack Afghanistan in
retaliation for the Sept. 11 terrorist attacks.

Dealers said the rupiah's weakness against the U.S dollar
discouraged investors from buying.

The dollar was trading at Rp 9,628, compared with Rp 9,493
late Tuesday in Asia.

"We had tons of negative sentiment here," said a trader with a
European bank, adding that falls on several regional bourses also
weighed on sentiment.

Dealers said telecommunications and cigarette blue chips led
losers.

Market bellwether Telekomunikasi Indonesia ended down 3.4
percent, or Rp 100, at Rp 2,950 and international call operator
Indosat lost 1.2 percent, or Rp 100, at Rp 7,950.

A dealer with a local brokerage said investors sold shares in
cigarette companies on speculation that they will book flat to
lower earnings this year due to the higher excise tax on
cigarettes and increased raw material costs.

Dealers said they expect the market to remain lower Thursday
on continued selling in blue chips and expectations that the
rupiah would weaken further.