Shares end lower from Astra, Telkom sales

Shares end lower from Astra, Telkom sales

Dow Jones/Jakarta

Indonesian shares ended lower on Monday led by further selling in automotive company Astra International and bellwether Telekomunikasi Indonesia, dealers said.

"Falls in Astra and Telkom hurt overall sentiment, spurring further profit taking after the main index hit a record high last week," said a trader with a foreign securities firm.

Dealers said growing worries over the high interest rate and the volatility of the rupiah also added to negative sentiment.

The Jakarta Stock Exchange's Composite Index fell 0.8 percent, or 15.504 points, to 1158.586.

Decliners led gainers 89 to 23, with 83 stocks unchanged. Volume rose to 1.4 billion shares valued at Rp 1.25 trillion, compared with 1.23 billion shares valued at Rp 1.1 trillion on Friday.

Astra International lost 4.5 percent to Rp 11,800 on expectations of lower 2005 sales as the high interest rate could prevent people from buying cars through bank loans.

Analysts expect the benchmark one-month interest rate of Bank Indonesia notes to hit 9.5 percent by the end of the year, compared with 8.5 percent at present, due to rising inflation.

Bellwether Telekomunikasi Indonesia lost 2.7 percent to Rp 5,350 on worries that the company may review its listing on the New York Stock Exchange due to the high cost.

Traders also attributed selling in Telkom to worries that Telkom will face stiffer competition from the entrance of foreign telecommunication companies. Hong Kong's Hutchison Telecommunications International Ltd. has said that it plans to acquire a stake in an Indonesian telecommunications company later this year.

Profit taking also hit cement maker Semen Gresik, which fell 4.3 percent to Rp 18,000 on expectations of lower 2005 sales as the weak rupiah is seen reducing consumer spending.

Dealers said they expect Indonesian shares to rebound on Tuesday on bargain hunting after the main index fell in the previous three sessions.