JSX falls further on concerns over prive hike
JSX falls further on concerns over prive hike
Dow Jones, Jakarta
Shares at the Jakarta Stock Exchange ended lower Friday as fuel price, telephone and electricity tariff hikes continued dampening market sentiments and late selling in cigarette and banking blue chips erased earlier gains, dealers said.
Gains across the region after Wall Street's rally overnight failed to improve broader sentiment on the local bourse, they added.
The Jakarta Stock Exchange Composite Index ended down 0.4 percent, or 1.613 points, at 407.512, off a high of 412.011.
Decliners led gainers 49 to 36, with 59 stocks unchanged.
Volume was thin at 156 million shares valued at Rp 187 billion (US$20.9 million).
Thursday, the Dow Jones Industrial Average climbed 3.2 percent, while the Nasdaq rose 3.7 percent.
Dealers said lingering worries over more demonstrations against the government's decision to raise electricity and telecommunications tariffs and fuel prices discouraged investors from taking firm buying positions.
Local reports said Friday that around 400 protesters from several non-governmental organizations staged demonstration in south Sumatra, demanding the government cancel the price hikes.
On Thursday, the first trading day of the year, the Composite Index fell 3.7 percent or 15.820 percent at 409.125 on the price and tariff increases. It was the largest drop in a single day since the Oct. 12 Bali bombing. The index plunged 10.35 percent to the four-year low of 337.48 on the next trading day after the Bali tragedy.
Analysts said the increases in tariffs and prices will hurt the revenue of many companies in the country this year.
On Friday, cigarette maker HM Sampoerna fell 4.4 percent, or Rp 150, to Rp 3,300, and its rival Gudang Garam lost 0.6 percent, or Rp 50, to Rp 7,850.
Heavyweight Bank Central Asia fell 2.2 percent, or Rp 50, to Rp 2,275 on further profit-taking after recent gains.
Retailer Matahari Putra Prima lost 2.1 percent, or Rp 10, to Rp 465 on fears the company's sales this year would be hit by a slowing of consumer spending after the tariff and price hikes.
But shares in car maker Astra International rose 7.7 percent, or Rp 225, to Rp 3,150 on a rebound after falling 16 percent in the past two trading sessions.
The Indonesian rupiah ended steady after a range-bound session Friday due to a lack of fresh incentives to move the market, dealers said.
The dollar ended at 8,920 rupiah, a touch higher from its close Thursday at Rp 8,915. Trading volume remained thin as most market participants are away on holiday until the end of the week.
Dealers said the market couldn't find a compelling reason to drive the dollar above Rp 8,950. Consequently, Bank Indonesia chose to stay on the sidelines Friday after actively intervening to defend the local currency Thursday.
"The best strategy is range-bound trading amid a lack of fresh incentives," said a dealer with a foreign bank in Jakarta.
Some analysts are bullish about the dollar over the medium term, citing political tensions that will likely worsen in the second half of 2002 ahead of elections next year. But dealers said that it's still too early to build excessive long-dollar positions.
Dealers said they expect the dollar to trade between Rp 8,900 and Rp 8,950 Monday.