JSX index plummets 1.4 percent

JAKARTA (JP): Shares on the Jakarta Stock Exchange (JSX) plunged yesterday as the JSX composite index lost 9.26 points or 1.4 percent to close at 641.62 amid rumors President Soeharto was sick.

Securities dealers said investors, already reeling from heavy losses on Wall Street, continued to sell as rumors battered their confidence further.

"The market overreacted to the news of the declining health of President Soeharto," one Niaga Securities said. "But the main concern was the fall of Wall Street."

The minister of foreign affairs, Ali Alatas, dismissed rumors that the President had suffered a stroke.

"News like that is common and it was engineered," he said after meeting Soeharto at the presidential palace yesterday.

Money market dealers said the rumor also affected foreign exchange trading in the morning session.

But the rupiah, which lost several points early, stabilized in afternoon trade.

The rupiah dropped to a low of 2,420 in New York overnight before steadying at 2,405.

In Jakarta, spot rupiah prices settled at 2,403.25/04.00 in the afternoon against an opening of 2,402.0/06.0.

Most blue chips on the JSX fell. Telkom dipped Rp 75 to Rp 3,525, Indosat was down Rp 125 to Rp 6,325, Bank Negara Indonesia lost Rp 50 to Rp 1,300, BII eased RP 50 to Rp 1,700, HM Sampoerna fell Rp 175 to RP 10,625 and Gundag Garam slipped Rp 225 to Rp 10,225. (09)