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.