Local shares end lower on weak regional market
Local shares end lower on weak regional market
Dow Jones, Jakarta
Indonesian shares ended lower for the fourth consecutive trading
day Tuesday, weighed down by declines across the region following
another sharp drop on Wall Street overnight, dealers said.
Dealers said late bargain-hunting in select blue chips lifted
the main index from its intraday low.
The Jakarta Stock Exchange Composite index ended down 2
percent, or 8.941 points, at 440.932, up from a low of 437.716.
Decliners led gainers 98 to 19, with 55 stocks unchanged.
Volume was thin at 504 million shares valued at Rp 379 billion
(US$41.88 million).
The Dow Jones Industrial Average fell 3.2 percent, while the
Nasdaq dropped 3.4 percent.
Dealers said overall sentiment was weak on concerns about
possible risks from local political uncertainty during the annual
parliamentary assembly.
The Indonesian police fired water cannons to disperse
thousands of protesting students outside parliament's front gate.
The students wanted the assembly to amend the national
constitution to, among other things, limit presidential tenure to
10 years, and allow direct presidential elections.
Automotive and telecommunications blue chips were among the
decliners.
Telkom rebounded from a low of Rp 3,475 to end the day down 2
percent, or Rp 75, to Rp 3,525. Telkom was down after its
American Depositary Receipts (ADRs) in New York Monday fell 0.3
percent to $7.75.
Indosat dropped 3.5 percent, or Rp 300, to Rp 8,300 after its
ADRs fell 4.1 percent to $9.3. Dealers said speculation that the
company will issue rights shares and bonds to refinance its
foreign debt has also spurred selling in Indosat shares.
Shares in car-maker Astra International fell 5.5 percent, or
Rp 175, to Rp 3,025 on lingering concerns about the shares'
dilution amid speculation that the company will issue rights
shares to help refinance its debt.
Bucking the trend were shares in cigarette-maker Gudang Garam,
which rose 0.6 percent, or Rp 50, to Rp 9,000 on late bargain-
hunting after recent falls.
Dealers expect the market to be flat to slightly higher
Wednesday on a rebound in blue chips after the recent declines.