RI shares end lower on weak rupiah, Asian markets

RI shares end lower on weak rupiah, Asian markets

Dow Jones, Jakarta

Indonesian shares ended lower Monday on swift profit-taking,
with sentiment hurt by the weak rupiah and losses on most Asian
markets, dealers said.

"We ran out of positive factors," said a trader with Paramitra
Securities.

The Jakarta Stock Exchange Composite index ended down 4.239
points, or 0.5 percent, at 815.582, down from an intraday high of
822.684. The main index Friday gained 0.4 percent on a rebound.

Decliners led gainers 74 to 34, with stocks unchanged.

Volume was 348 million shares valued at Rp 856 billion
(US$93.2 million).

The U.S. dollar was trading higher at Rp 9,180, compared with
Rp 9,115 at Friday's close, as local companies are buying the
U.S. currency to pay offshore obligations by the end of the
month.

Bank blue chips were among the decliners amid renewed concerns
that the central bank may raise interest rates to defend the
rupiah.

Bank Mandiri fell Rp 25, or 1.7 percent, to Rp 1,450, Bank
Central Asia lost Rp 50, or 2.4 percent, to Rp 2,000 and Bank
Rakyat Indonesia ended down Rp 25, or 1.3 percent, to Rp 1,900.

Profit-taking also hit shares in Indonesian Satellite Corp.,
down Rp 50, or 1.2 percent, to Rp 4,250, and cement maker
Indocement Tunggal Prakarsa, which fell Rp 25, or 1.3 percent, to
Rp 1,975.

Carmaker Astra International bucked the trend, gaining Rp 50,
or 0.8 percent, to Rp 6,750 on a rebound.

Dealers said they expect the market Tuesday to trade slightly
lower on further profit-taking.

Meanwhile, the rupiah closed lower in choppy trading Monday as
local companies bought the dollar to pay maturing month-end
offshore obligations, dealers said.

The dollar closed at Rp 9,180, up from its close Friday at Rp
9,115.

Dealers said that bids from local companies pushed the U.S.
unit to as high as Rp 9,200 intraday. Some investors, however,
sold the dollar after it touched the day's high as underlying
sentiment was positive following the smooth conduct of the
presidential poll last week.

"The dollar was stuck in a range-bound trading today," a
dealer said.

Fears that the bird flu may have mutated and spread among
humans in Thailand also supported the dollar, dealers said.

Dealers said that demand from local companies might continue
rising till the end of the month, which could push the dollar
higher.