JSX trade hit by Elang suspension

JAKARTA (JP): The Jakarta stock market fell yesterday as the suspension of property developer Elang Realty dampened market sentiment.

The Composite Index lost 9.3 points to 647.23 as 328.3 million shares changed hands in trade dominated by local investors.

"So far, I don't see any political issues behind the fall," one analyst said.

Trade was worth Rp 652.6 billion.

Brokers said weak regional markets and a lack of positive local news also subdued investor sentiment.

Elang Realty was suspended after its shares plunged over 30 percent to Rp 1,200 in early trade.

Elang Realty relisted in the afternoon session.

The stock closed at Rp 1,425 as 111.74 million shares worth Rp 183.8 billion were traded.

It was this month's third suspension after Bank Pikko and PT Multibreeder.

Brokers said PT Elang Realty's shares had risen sharply over the past two weeks on rumors it would hold a rights issue.

Elang Reality shares were worth just Rp 800 on April 17 and hit a peak of Rp 1,725 Tuesday.

Bakrie Capital Indonesia, the holding company which owns 70 percent of Elang Realty, would discuss holding a rights issue at an extraordinary general meeting in the coming weeks, a source said.

The source said that the Bakrie group would change Elang's name to Bakrie Land and inject all Bakrie's property projects into the company.

At present, the Bakrie group currently operates Bali Nirwana Resort in Bali, Taman Rasuna apartment complex and office building Menara Nusa, both in Jakarta.

Telkom shares dipped Rp 75 to Rp 3,475, while Indosat eased Rp 50 to Rp 6,675.

The newly listed Putra Surya Multidana rose Rp 25 to Rp 2,625.

Cigarette maker Gudang Garam fell Rp 550 to Rp 10,100, while rival Sampoerna slipped Rp 125 to Rp 9,675.

Brokers said both stocks were affected by weak sales in the first quarter of this year.

Most bank stocks were down as Bank International Indonesia slid 25 to Rp 1,725, Bank Danamon Rp 50 to Rp 2,350, while Lippo Bank was down Rp 25 at Rp 2,325. Bank Negara Indonesia was steady at 1,350.

In the currency market, the rupiah weakened against the U.S. dollar in afternoon trade with the spot rate falling to 2,426.25/26.65 after reaching a high of 2,422.75 in morning trade. (09)