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.