Shares end low on profit-taking in Indosat
Shares end low on profit-taking in Indosat
Dow Jones/Jakarta
Indonesian shares ended marginally lower on Monday on profit- taking in cigarette maker Gudang Garam and Indonesian Satellite, dealers said.
They said the weak rupiah against the dollar and renewed worries that the government may soon raise fuel prices spurred investors to take profit after the main index ended at a record high on Friday.
"It was a cautious and dull trade," said a trader with a local securities firm. He said many investors stayed on the sidelines due to an absence of fresh leads.
The rupiah was trading lower at Rp9,160 to the dollar, compared with Rp9,145 on Friday, as investors trimmed their positions on expectations of an increase in U.S. interest rates.
The Jakarta Stock Exchange Composite Index ended down 1.048 points, or 0.1 percent, at Rp1045.435.
Decliners led gainers 66 to 51, with 83 stocks unchanged.
Volume was 2.1 billion shares valued at Rp1.5 trillion, compared with 2.4 billion shares valued at Rp1.8 trillion on Friday.
Gudang Garam, the nation's largest cigarette producer, fell 2 percent to Rp16,850 on profit-taking, after rising 14 percent last week.
Profit-taking also hit Indonesian Satellite, which shed 1.7 percent to Rp5,700, and Bank Central Asia, which lost 1.7 percent to Rp2,875.
Garam's rival Hanjaya Mandala Sampoerna, however, ended the day 0.5 percent higher at Rp7,450 on a rebound after falling to an earlier low of Rp7,150.
Dealers said they expect the market to trade lower Tuesday on continued profit-taking in Gudang Garam.
Indonesian rupiah closed lower on Monday as market participants trimmed dollar-short positions ahead of several events in the next two weeks that could affect the movement of the U.S. currency, dealers said.
The dollar closed at Rp9,160, up from its close on Friday at Rp9,145.
"The dollar/rupiah crept higher in a relatively quiet trading day as there will be many events taking place within the next two weeks," a dealer said.
They cited the U.S. Federal Reserve's meeting later this week, and the G-7 meeting next week, which could affect the dollar's direction against other global rivals, which could also permeate the dollar-rupiah market.
Dealers expect dollar inflows into Indonesia to slow until the market gets a clear direction on the dollar versus its major rivals.
Also, a 0.1 percent correction in Indonesian shares on Monday could be a prelude to a wave of profit-taking, which would also halt capital inflows into the country.
Dealers expect the greenback to trade between Rp9,160 and Rp9,200 on Tuesday.