RI shares end lower on profit-taking
RI shares end lower on profit-taking
Dow Jones, Jakarta
Indonesian shares ended marginally lower Monday as investors, mostly local retails, took profit in select blue chips that rose in the previous seven sessions, dealers said.
They said renewed concerns that the rupiah may weaken further, ahead of the presidential runoff Sept. 20, also added to negative sentiment.
"Selling, however, wasn't that heavy," said a trader with a European securities firm.
The Jakarta Stock Exchange Composite ended down 1.703 points, or 0.2 percent, at 784.787. The main index gained 7.5 percent in the previous seven sessions.
Decliners led gainers 62 to 36, with 83 stocks unchanged.
Volume was 780 million shares valued at Rp 580 billion (US$62.4 million).
Indonesian Satellite Corp. led the decliners, dropping Rp 75, or 1.7 percent, to Rp 4,250 on profit-taking. The stock jumped 6.1 percent in the previous seven sessions.
Also lower on profit-taking were shares in cigarette maker Gudang Garam, which shed Rp 50, or 1.4 percent, to Rp 13,300 and its rival Hanjaya Mandala Sampoerna, which fell Rp 50, or 0.9 percent, to Rp 5,450.
Bank Mandiri maintained its gains on bargain hunting and news that the bank plans to buy stakes in other regional banks to improve its performance. The stock rose Rp 25, or 1.9 percent, to Rp 1,375.
Bellwether Telekomunikasi Indonesia rebounded from an earlier low of Rp 8,050, to end the session unchanged at Rp 8,200.
Dealers said they expect the market Tuesday to trade slightly lower on further profit-taking.
Meanwhile, the rupiah weakened but was off intraday lows in quiet, tight-ranged trading, taking direction from the major currencies.
Traders said that the Japanese yen's rise during the day helped lift the rupiah off the day's low at 9,300 rupiah to the dollar. At the end of the day, the dollar ended at Rp 9,285, slightly up from its close of Rp 9,278 Friday.
"It's a quiet and cautious market," said a trader with a local state-owned bank, adding that many players stayed on the sidelines.
The currency has been trapped in a range with sentiment cautious ahead of the second round of presidential polls Sept. 20. Worries that political risks - as the polls near - could rise, pressuring the rupiah, led local companies with offshore debt to pounce on opportunities to stock up on dollars.
In the runoff, incumbent Megawati Soekarnoputri will challenge first round front-runner Susilo Bambang Yudhoyono, a former security minister.
Latest surveys show that Yudhoyono will likely emerge the winner. But the race may be closer than previously expected as Megawati is trying to project a more positive image.
Many analysts expect the rupiah's movements to remain sensitive to political developments.