Shares end lower as market eyes cabinet lineup
Shares end lower as market eyes cabinet lineup
Dow Jones, Jakarta
Indonesian shares ended lower on Monday as investors continued to
sell select bank and telecommunication blue chips, tracking
losses in several Asian markets, dealers said.
"It's a dull and cautious market," said a trader with a local
securities firm. He added that many investors stayed on the
sidelines amid an absence of fresh leads and ahead of the
announcement of the new cabinet lineup on Wednesday.
The Jakarta Stock Exchange Composite index ended down 3.206
points, or 0.4%, at 854.387.
Decliners led gainers 65 to 38, while 91 stocks were
unchanged.
Volume was 1.45 billion shares, valued at Rp 650 billion,
compared with 1.1 billion shares Friday, valued at Rp 882.4
billion.
Dealers said many bank stocks fell on profit-taking and
renewed expectations that the central bank may raise interest
rate to combat rising inflation.
Bank Mandiri, the nation's largest lender, fell 1.6 percent to
Rp 1,500, Bank Rakyat ended down 3.6 percent at Rp 2,025, and
Bank Danamon lost 0.7 percent to Rp 3,675.
Bellwether Telekomunikasi Indonesia ended down 0.6 percent at
Rp 4,275.
Telkom's rival Indonesian Satellite Corp. rose 1.2 percent, to
Rp 4,275, on a rebound and its plan to invest $700 million next
year to expand its business.
Dealers said they expect the local bourse Tuesday to trade
higher on a rebound after falls in the previous three sessions.
Meanwhile, the rupiah failed to gain on the U.S. dollar's
weakness, ending down in light trade Monday as local companies
bought dollars to repay offshore debt due by the end of the
month, dealers said.
The dollar fell as low as Rp 9,070 during the day on the
general weakness, but corporate demand emerging on dips pushed
the U.S. unit to close at 9,110, up slightly from its close
Friday at 9,100.
"I think demand for the dollar is relatively robust this month
as importers are likely boosting food imports ahead of the Muslim
festivity next month," a dealer said.
Trade, however, was light, with many market participants
staying on the sidelines to await the announcement of the new
cabinet lineup.
Dealers expect the dollar to remain trapped between 9,070 and
9,120 Tuesday.