Shares end lower as Telkom, Astra fall
Shares end lower as Telkom, Astra fall
Dow Jones, Jakarta
Indonesian shares ended lower on Thursday led by profit taking in
PT Telekomunikasi Indonesia (Telkom) and automotive company Astra
International after the main index hit a record high in the
previous session, dealers said.
"It's a fair price correction after recent sharp gains," said
a trader with Kuo Capital Securities.
He said losses in most Asian markets and the volatility of the
rupiah discouraged investors from holding their equity investment
for any longer.
The Jakarta Stock Exchange's Composite Index fell 0.6 percent,
or 6.876 points, to 1185.327.
Decliners beat gainers 76 to 46, with 73 stocks unchanged.
Volume rose to 1.98 billion shares valued at Rp 3.6 trillion,
compared with 1.55 billion shares valued at Rp 1.4 trillion on
Wednesday.
Bellwether Telkom dropped 1.8 percent to Rp 5,600 on profit
taking after gains early this week and renewed worries over
stiffer competition. Telkom's rival Indosat closed unchanged at
Rp 5,700.
Astra lost 2 percent to Rp 12,600 on growing worries that the
high interest rate could hurt its sales by preventing people from
buying cars with bank loans.
Profit taking also hit shares in cement maker Semen Gresik,
which ended down 2.6 percent at Rp 19,000 and Bank Rakyat
Indonesia, which fell 3.1 percent to Rp 3,125.
On the upside, gas producer Perusahaan Gas Negara jumped 5.8
percent to Rp 3,650 ahead of the government's plan to sell a 10
percent stake in the company later this year.
Dealers said they expect Indonesian shares to trade lower on
Thursday on follow through selling in Astra International.
The Indonesian rupiah closed higher on Thursday, likely on
capital inflows linked to the government's asset sales and the
dollar's weakening against most regional currencies, dealers
said.
The dollar closed at Rp 9,740, compared with its close on
Wednesday at Rp 9,765.
Dealers said that they detected capital inflows, which were
likely linked to Wednesday's sale of the government's 10.5
percent stake in Bank Danamon that raised around $270 million.
"We sensed capital inflows linked to the Danamon stake sales
since yesterday," a dealer with a foreign bank said.
Dealers said that the rupiah also gained after the dollar slid
versus most Asian currencies such as the yen and the won.
Indonesian importers, however, took the dollar's slide as an
opportunity to accumulate the unit as they have import bills
maturing by the end of the month, dealers said. Their dollar-
buying slowed the rupiah's appreciation somewhat.
Dealers expect the dollar to trade between Rp 9,720 and Rp
9,760 on Friday.