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.