Shares end lower amid fears of violent protests

Shares end lower amid fears of violent protests

Dow Jones, Jakarta

Indonesian shares ended lower for the sixth consecutive trading day Wednesday, led by selling in car maker PT Astra International ahead of the close of registration for its planned rights issue Thursday, dealers said.

Overall sentiment remained weak given growing concerns that protests against recent price and tariff hikes will escalate, they said.

The Jakarta Stock Exchange Composite index ended down 1.3 percent, or 5.105 points, at 389.414 - breaking the key support of 390.

The government raised fuel prices between 3 percent and 23 percent, telecommunication tariffs by an average of 15 percent, and electricity tariffs by 6 percent, effective Jan. 2.

Concerns that the hikes will hurt corporate revenues this year spurred the selling of stocks, said traders.

Many investors stayed away from the market, fearing that the demonstrations against the hikes would turn violent.

Thousands of laborers and businessmen are expected to join students to stage a massive demonstration Thursday.

"They (investors) sold shares as they prepared for the worst," said a trader with a a foreign brokerage firm.

Astra International led the decliners, plunging 13 percent, or Rp 400, to Rp 2,600. Dealers attributed the selling in Astra to profit-taking after the company's shares posted significant gains due to year-end window-dressing. The selling also reflected the fact that many retail investors didn't want to subscribe to shares in the planned rights issue, dealers said.

PT Indosat lost 0.6 percent, or Rp 50, to Rp 8,150 due to lingering fears of more protests by its workers who oppose the recent sale of the government's 41.94 percent stake in Indosat to Singapore Technologies Telemedia.

Bellwether PT Telkom bucked the trend, rising 0.7 percent, or Rp 25, to Rp 3,525 on a mild rebound after recent falls.

Dealers expect the main index to easily break the support level of 385 if selling continues Thursday.

Meanwhile, the rupiah ended flat as fears of demonstrations against recent utility price hikes negated generally positive sentiment toward the local currency.

The dollar closed at Rp 8,935, unchanged from Tuesday's close.