JSX ends lower on blue chips profit-taking

JSX ends lower on blue chips profit-taking

Dow Jones, Jakarta

Indonesian shares ended lower on Thursday as losses on many regional markets spurred profit-taking in telecom and automotive blue chips, ending the main index's rally during the previous seven sessions, dealers said.

"Selling, however, wasn't that heavy," said an analyst with BNI Securities. She added that underlying sentiment for Indonesian shares remains positive due to expectations of a better-performing economy under the new government.

Analysts said the dollar's global weakness should also trigger positive sentiment toward many Indonesian companies that have dollar-denominated debt.

The Jakarta Stock Exchange Composite Index ended down 5.643 points, or 0.6 percent, at 955.681. The main index has risen 11 percent since the beginning of the month.

Gainers led decliners 73 to 57, with 85 stocks unchanged.

Volume was 1.8 billion shares valued at Rp 1.4 trillion (about US$156 million).

Telecommunication blue chips led the decliners.

Bellwether Telekomunikasi Indonesia fell 2.9 percent to Rp 4,950 on profit-taking after gaining 8.5 percent in the previous four sessions.

Telkom's rival Indonesian Satellite lost 5 percent to Rp 5,700, also on profit-taking after rising 15 percent in the previous six sessions.

Profit-taking hit shares in carmaker Astra International, which fell 2.3 percent to Rp 8,600, and Bank Mandiri, which ended down 1.4 percent at Rp 1,800.

Shares in Indonesia's fifth largest lender Bank Danamon bucked the trend, rising 4.3 percent to Rp 4,225 on expectations of higher full-year earnings.

Dealers said investors also bought shares in mining blue chips on expectations of higher 2004 revenue due to an increase in commodity prices. Nickel miner International Nickel Indonesia, or Inco, rose 4.8 percent to Rp 550, and gold and nickel miner Aneka Tambang ended up 1.5 percent to Rp 1,725.

Elsewhere in Asia, most Asian stock markets declined Thursday following recent gains, but Tokyo shares continued a rebound as investors hunted for bargain technology and steel issues.

Japan's Nikkei Stock Average of 225 issues rose 28.01 points, or 0.26 percent, to finish at 10,900.34. On Wednesday, the Nikkei gained 22.94 points, or 0.21 percent.

In Hong Kong, shares fell for a second session, with losses led by banking giant HSBC Holdings PLC and property blue chips.

The Hang Seng Index shed 70.41 points, or 0.5 percent, to end at 13,926.61. On Wednesday, the Hang Seng fell 26.27 points, or 0.19 percent.

But the Australian and New Zealand markets shrugged off the weakness in regional markets to finish at fresh record highs.

Share prices in Sydney rose for a third consecutive day on strong demand for mining, energy and insurance stocks. The S&P/ASX 200 index gained 21.70 points, or 0.6 percent, to 3,904.20.

In Wellington, shares finished at a new record high as investors bought into a broad range of stocks. The NZSX-50 gained 19.79 points, or 0.7 percent, to 2,959.03.

In Bangkok, Thai shares climbed marginally on gains by banking issues. The Stock Exchange of Thailand Index added 4.43 points, or 0.7 percent, to 647.49.

In Kuala Lumpur, Malaysian shares declined as more investors sold stocks in the absence of fresh leads. The weighted Composite Index of 100 blue chips was 5.64 points, or 0.6 percent, lower, at 905.22.

In Manila, Philippine shares fell following two sessions of gains. The 30-company Philippine Stock Exchange Index shed 11.69 points, or 0.6 percent, to 1,814.50.

In Seoul, South Korean shares ended flat as investors began selling late in the session, erasing most of the early gains, on continued worries over the weak U.S. dollar against the country's currency, the won. The Korea Composite Stock Price Index, or Kospi, dropped 0.07 point, or 0.01 percent, to 872.49.

In Singapore, share prices edged down in the absence of fresh leads. The Straits Times Index lost 5.31 points, or 0.3 percent, to 2,034.88.

In Taipei, Taiwan shares fell as investors dumped stocks of companies sensitive to the strengthening of the Taiwan dollar. A gloomy technology sector outlook also weighed on sentiment. The Weighted Price Index lost 56.07 points, or 1.0 percent, to 5,855.24.