Shares end down amid uncertainty

Shares end down amid uncertainty

Dow Jones, Jakarta

Shares closed marginally lower on Monday as investors, mostly
foreigners, continued to offload their equity portfolio amid
political uncertainty ahead of the presidential runoff in
September, dealers said.

Gains in many regional markets failed to improve buying
sentiment, they said.

"The market is consolidating ahead of the September's event,"
said a trader with Paramitra Securities.

The Jakarta Stock Exchange Composite index was down 1.101
points, or 0.2 percent, at 749.371.

Decliners led gainers 65 to 35, with 89 stocks unchanged.
Volume was 495 million shares valued at Rp 447 billion.

Consumer goods producer Unilever Indonesia led the decliners,
falling Rp 75, or 2.1 percent, to Rp 3,550 on talks that the
company would issue rights shares.

Bellwether Telekomunikasi Indonesia ended down Rp 50, or 0.7
percent, at Rp 7,650, and Indonesian Satellite Corp. fell Rp 50,
or 1.2 percent, to Rp 4,075 on profit taking.

Dealers said ongoing worries that the central bank may raise
interest rate kept sentiment in select bank blue chips weak. Bank
Mandiri dropped Rp 25, or 2 percent, to Rp 1,200, and Bank Rakyat
shed Rp 25, or 1.5 percent, to Rp 1,650.

Bank Negara Indonesia, however, jumped Rp 100, or 9.3 percent,
to Rp 1,175 on hopes that the government will proceed with the
sale of its stake in the bank by the fourth quarter of this year.

Cement maker Semen Gresik rose Rp 250, or 2.6 percent, to Rp
9,750 on bargain hunting and expectations that the company will
complete its 2002 and 2003 financial audit by October.

Dealers said they expect the market to trade lower Tuesday on
further selling in blue chips.

Meanwhile, the rupiah ended lower in quiet trading Monday as
local companies bought the dollar to pay offshore debts maturing
at the end of the month, dealers said.

The dollar finished at Rp 9,265, up from its close at 9,240
Friday.

Local companies are saddled by offshore borrowings, which are
estimated at US$60 billion. Payment of maturing debts frequently
dogs the local unit.

Dealers said that the dollar's slide in the previous two
sessions had provided good levels for local companies to
accumulate the unit, dealers said.

The dollar fell to an intraday low of Rp 9,210 Friday as
foreigners bought the rupiah to take part in a government bond
auction Tuesday.

The government hopes to raise Rp 2 trillion to help narrow the
state budget deficit.

"Dollar offer from foreigners evaporated Monday," one dealer
said.

Dealers expect the dollar to test higher Tuesday as more local
companies are expected to buy the currency.

Dealers expect the dollar to trade between 9,250 and 9,300
Tuesday.