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.