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