Shares end lower led by profit-taking in Telkom
Shares end lower led by profit-taking in Telkom
Dow Jones, Jakarta
Indonesian shares ended marginally lower on Monday led by
profit-taking in bellwether Telekomunikasi Indonesia, with
renewed concerns over the weaker rupiah hurting overall
sentiment, dealers said.
"The market ran out of steam after recent sharp gains," said a
trader with Andalan Artha Advisindo.
She said the underlying sentiment for Indonesian shares,
however, remained positive given expectations of high economic
growth this year. The Indonesian government expects the economy
to expand by 6.1 percent in 2005 from around 5 percent last year.
The Jakarta Stock Exchange's Composite Index ended down 0.2
percent, or 2.49 points, at 1169.750.
Gainers led decliners 71 to 58, with 74 stocks unchanged.
Volume fell to 1.2 billion shares valued at Rp 1.16 trillion,
compared with 2.1 billion shares worth Rp 1.93 trillion on
Friday.
Bellwether Telekomunikasi Indonesia dropped 2.6 percent to
Rp 5,650 on profit-taking after it rose 6.4 percent Friday.
Profit-taking also hit shares in Bank Danamon, which fell 1.9
percent to Rp 5,300, and cigarette maker Gudang Garam, which lost
1 percent to Rp 12,850.
Dealers said the weaker rupiah hurt sentiment in companies
that have sizable dollar debt. Cement maker Indocement Tunggal
Prakarsa ended down 1.3 percent to Rp 1,725. Meanwhile,
pharmaceutical company Kalbe Farma lost 2.2 percent to Rp 890 on
worries that the weaker rupiah would increase the cost of
imported raw materials.
Shares in Bank Mandiri, the nation's largest lender by assets,
gained 2.5 percent to Rp 1,630, on hopes of improved first-half
earnings.
Dealers expect shares to continue to fall on Tuesday on
further profit-taking.
The Indonesian rupiah ended lower on Monday against the U.S.
dollar on dollar demand from local companies needing to pay
offshore bonds at the end of the month, dealers said.
The dollar closed at Rp 9,820 on Monday compared with Rp 9,795
on Friday.
Dealers said demand for the greenback from local companies is
expected to remain healthy as the month comes to a close.On
Monday, the unit hit an intraday high of Rp 9,830, but profit-
taking shaved the dollar's gains slightly, dealers said.
"Some market players, who bought the dollar on Friday taking
advantage of the dollar's fall, sold back the unit to take
profit," a dealer with a local bank said.
Normally Bank Indonesia sells the U.S. currency to prevent
sharp falls in the local currency; however Bank Indonesia wasn't
heard selling dollars on Monday as the moves were tied to profit-
taking, dealers added.
Dealers expect the dollar to creep higher on Tuesday as local
companies may continue to accumulate the currency, with the
expected trading ranged pegged at Rp 9,800-Rp 9,850.