Shares end down on profit-taking in Astra International, Indosat
Shares end down on profit-taking in Astra International, Indosat
Dow Jones, Jakarta
Indonesian shares ended lower on Tuesday, as rebounds in Bank
Mandiri and food producer Indofood Sukses Makmur only partly
offset profit-taking in carmaker Astra International and
Indonesian Satellite, dealers said.
"The market ran out of steam after recent gains," said a
trader with Andalan Artha Advisindo.
She said investors were also spooked by losses in many Asian
markets and renewed fears that the central bank will continue to
increase its key interest rate to defend the local currency.
The Jakarta Stock Exchange Composite Index shed 4.02 points,
or 0.4 percent, to 1,092.81.
Decliners led gainers 82 to 31, with 74 stocks unchanged.
Volume was 1.3 billion shares valued at Rp 1.1 trillion, compared
with 1.6 billion shares valued at Rp 1.2 trillion on Monday.
Astra International lost 1.2 percent to Rp 12,550 on profit-
taking after gaining 13 percent over the previous five sessions
on plans to pay a Rp 270 a share dividend.
Indosat, the nation's second-largest telecommunication
company, dropped 1.9 percent to Rp 5,250 as profit-taking emerged
after solid gains over the previous three sessions on
expectations of improved first half earnings.
Indosat's rival Telkom, the nation's largest
telecommunications company, shed 0.5 percent to Rp 4,775.
Profit-taking also hit shares in cigarette maker Gudang Garam
which fell 1.7 percent to Rp 11,900 after recent gains on
bargain-hunting.
Helping to offset losses, Bank Mandiri gained 0.7 percent to
Rp 1,510 after sharp falls last week due to poor first-quarter
earnings.
Indofood rose 0.9 percent to Rp 1,190 on bargain-hunting and
ahead of its plan to sell its stake in flour unit Bogasari Flour
Mills in the third quarter of this year.
Dealers said they expect the market to trade lower on
Wednesday led by further profit-taking in Astra International.
Meanwhile, the rupiah snapped seven consecutive sessions of
losses to close higher, thanks to the dollar's slide against the
yen, dealers said.
The dollar closed at Rp 9,550, down from its close on Monday
at Rp 9,590.
But dealers said that ample rupiah liquidity and concerns over
possible terrorist attacks on Jakarta hotels slowed the dollar's
fall.
Former public shareholders of HM Sampoerna are sitting on
rupiah proceeds after Philip Morris paid for its purchase of
Sampoerna shares likely on Friday and on Monday.
"These former shareholders may be tempted to convert some of
their rupiah into dollars," said a dealer with a local bank.
Meanwhile, the U.S. government's warning on Friday of possible
terrorist attacks targeting Westerners made market players wary
of buying the rupiah.
News Tuesday that the police evacuated workers at the Trade
Ministry office after they received a bomb threat fueled concerns
about a possible attack.
Dealers expect the dollar to trade between Rp 9,520 and Rp
9,575 on Wednesday.