Shares end lower on weak rupiah

Shares end lower on weak rupiah

Indonesian shares closed lower on Friday, tracking losses in most Asian markets, as the rupiah's continued weakness hurt overall sentiment, dealers said.

"The market lost its ground again," said a trader with a local securities firm. She expects the main index to remain in a tight range ahead of the presidential runoff in September, which is contributing to negative sentiment.

The Jakarta Stock Exchange composite index ended down 2.259 points, or 0.3 percent, at 755.920. Decliners led gainers 62 to 35, with 92 stocks unchanged. Volume was 707 million shares valued at Rp 379 billion (about US$40 million).

The dollar was higher at Rp 9,265, compared with its close of Rp 9,240 on Thursday, tracking its gains against the yen.

Dealers said growing concerns that the central bank may further raise interest rates prompted investors to continue selling select bank blue chips.

The nation's largest lender, Bank Mandiri dropped Rp 25, or 2 percent, to Rp 1,225, while Bank Niaga ended down Rp 5, or 1.6 percent, at Rp 305.

Indonesian Satellite Corp. fell Rp 50, or 1.2 percent, to Rp 4,175 and gas and oil company Medco Energi lost Rp 50, or 3.4 percent, to Rp 1,425 on profit-taking.

Cigarette maker Hanjaya Mandala Sampoerna, however, bucked the trend, gaining Rp 100, or 1.9 percent, to Rp 5,400 on a rebound.

Dealers said they expect the market Monday to trade lower on further profit-taking. -- Dowjones