Shares end lower on profit taking in Gresik, Telkom
Shares end lower on profit taking in Gresik, Telkom
Shares ended down on Monday as profit-taking hit Semen Gresik, Telekomunikasi Indonesia and other stocks that posted recent gains, dealers said.
"Many investors adjusted their positions after recent sharp gains," said a trader with Kuo Capital Securities. He added that overall sentiment remains cautious due to the weakness of the rupiah against the U.S. dollar.
The Jakarta Stock Exchange Composite Index ended down 1.130 points, or 0.1 percent, at 964.086, after hitting an intraday high of 966.848. The main index ended at a record high Friday on foreign buying.
Decliners led gainers 77 to 51, with 77 stocks unchanged. Volume was 1.9 billion shares valued at Rp 1.3 trillion, compared with 1.8 billion shares valued at Rp 1.3 trillion in the previous session.
Semen Gresik, the nation's largest cement maker, led decliners, ending down 3.1 percent at Rp 12,450 on profit-taking and renewed worries that a long-running dispute between the government and Mexico's Cemex over control of Gresik won't be resolved soon.
Bank Mandiri, the nation's largest lender, fell 1.4 percent, to Rp 1,800 on a price correction after rising 7.4 percent last week.
Profit-taking also hit Indonesian Satellite, which ended 0.9 percent lower at Rp 5,750 and its rival Telekomunikasi Indonesia, which dropped 1 percent to Rp 4,950.
Dealers said they expect the market Tuesday to trade flat to slightly lower as investors are likely to continue to take profit in telecom and cement blue chips.
Meanwhile, the rupiah ended lower on Monday due to month-end demand for the U.S. dollar from importers, dealers said.
The dollar closed at Rp 9,013, up from its close Friday at 8,990.
"Some local importers actively bought the dollar today," said a dealer with a foreign bank.
The greenback also gained ground against the local unit as foreign market participants covered their short positions on the back of the U.S. unit's rebound versus other major currencies, dealers said.
Dealers, however, said that market participants remained positive on the rupiah due to the improving political climate in Indonesia.
Dealers expect the dollar to trade between 8,990 and 9,025 Tuesday. -- Dow Jones