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.