Rupiah ends up, shares down

Rupiah ends up, shares down

Dow Jones, Jakarta

The Indonesian rupiah ended up against the dollar in thin
trade Monday as concerns that the recent hikes in fuel prices and
tariffs would spark violent protests eased, dealers said.

The dollar closed at Rp 8,875, down from its close Friday at
Rp 8,925.

With memories of the fuel price hike that sparked riots in
1998, leading to the ouster of former president Soeharto, still
vivid, the market was relieved the demonstrations over the recent
hikes in fuel and utility charges were so far peaceful and under
control, dealers said.

Earlier this month, the government raised fuel prices by
between 3 percent and 32 percent, telecommunication tariffs by an
average 15 percent, and electricity tariffs by 6 percent, as part
of measures to reduce costly subsidies in the state budget.

Hundreds of students were reported to have taken to the
streets in some cities Monday but there has been no report of
violence so far.

Tuesday, dealers expect the dollar to test the Rp 8,870
support, which if broken, could see the greenback heading toward
Rp 8,850. Any dollar rebound is expected to be well capped at
Rp 8,880.

Bank Indonesia had said last week the dollar is likely to
trade between Rp 8,800 and Rp 9,200 this year.

Indonesian shares ended lower, led by further profit-taking in
cigarette maker HM Sampoerna and car maker Astra International,
dealers said.

Lingering concerns about protests against recent tariff and
price hikes weighed down broader sentiment, causing many
investors to stay away from the market, they added.

The Jakarta Stock Exchange Composite index ended down 0.9
percent, or 3.437 points, at 396.228.

Decliners edged out gainers 53 to 38, with 60 stocks
unchanged.

Volume was light at 285 million shares valued at Rp 163
billion.

"Selling remained although there were no reports of violence
(during the demonstration)," said a trader with a European
brokerage firm.

Cigarette maker HM Sampoerna widened its losses on profit-
taking, falling 5.6 percent, or Rp 200, to Rp 3,375 after gaining
17 percent last week.

Further profit-taking also hit car maker Astra International,
which lost 4.4 percent, or Rp 100, to Rp 2,200, and heavyweight
Bank Central Asia, which fell 3.3 percent, or Rp 75, to Rp 2,225.

Bellwether Telekomunikasi Indonesia and Indonesian Satellite
were both unchanged, at Rp 3,600 and Rp 8,250, respectively.

Bucking the broad market trend, shares in cigarette maker
Gudang Garam rose 0.7 percent, or Rp 50, to Rp 7,400 on a rebound
after recent falls.