Local stock trading remains under pressure

JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX) remained under a strong selling pressure yesterday with most investors dumping most of their shares.

Securities dealers said that many fund managers and individual investors sold their blue-chip shares and switched their investments to fixed income instruments to benefit from the sharp increase in domestic interest rates.

The central bank significantly raised the interest on short- term promissory notes on Monday to help stabilize the rupiah and curb inflation. This prompted commercial banks to raise their one-month deposit rates to between 50 percent and 65 percent per annum.

"Trading activities were largely marked by massive selling orders by most investors of blue-chip stocks," a broker from Trimegah Securities said.

The JSX Composite Index fell 2.8 percent or 14.65 points for two consecutive days to close at 501.66 points from 516.32 the previous day.

About 523.44 million shares changed hands on the regular market valued at Rp 558.46 billion (US$64.19 million).

Other Asian stock markets ended mixed yesterday as domestic concerns weighed on investors, with Japanese share prices closing 1.6 percent lower on slim hopes for income tax cuts, AFP reported

In Tokyo, the key Nikkei stock average of 225 selected issues fell 262.44 points or 1.6 percent to finish at 16,606.39.

The Topix index of all first-section issues was down 11.48 points at 1,239. 01 points, with turnover on the major board totaling an estimated 480 million shares, up from 361.7 million shares the previous day.

In Hong Kong, the key Hang Seng index rose 51.10 points at 11,645.43, off a high of 11, 688.65 and a low of 11,516.76 on turnover of HK$7.52 billion (US$971 million.

In Australia, the Australian Stock Exchange's main indicator, the All Ordinaries index, gained 12.7 points to 2,792.0, exceeding its previous best finish of 2,779.3 on Monday.

In Singapore, stock prices ended 1.2 percent lower on continued profit-taking after last week's rally.

The Straits Times Industrials index of the Stock Exchange of Singapore fell 19.90 points to end at 1,640.54, up from a low of 1,634.82, while the broader All-Singapore index rose 1.22 points to 432.91.

In Kuala Lumpur, the key stock index closed 0.5 percent lower in thin trading as additional steps announced to boost the economy failed to entice investors.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 3.90 points to end at 731.89. The lesser second board slipped 2.58 points, or 2.58 percent, to 184.62.

In Bangkok, Thai share prices slumped two percent amid fears over the stronger baht hitting exports and pressure from weaker regional markets, analysts and dealers said.

The Stock Exchange of Thailand (SET) broad-based index fell 13.40 points to close the day at 490.27 points, while the SET 50 selected index closed down 1.14 points at 35.99.

In Manila, Philippine share prices closed 0.2 percent lower after being pulled down by heavyweight issues, analysts said.

The Philippine Stocks Exchange index shed five points to 2,305.06.

In Seoul, the composite index closed down 3.47 points at 508.43, off a low of 506. 10, and a high of 513.37.

In Taipei, the price index rose 49.26 points to 8, 806.85, on turnover of T$100.78 billion (US$3.08 billion).

In Shanghai, the B share index rose 0.08 points to close at 55.07 points while the A share index of locally-traded stocks ended up 15.18 points, or 1.2 percent, at 1,258.86 points.

In New Zealand, the NZSE-40 index was down 3.74 points at 2,315.53 with Telecom Corp. up five cents at A$8.85. (aly)