Shares end mixed on profit-taking

Shares end mixed on profit-taking

Dow Jones, Jakarta

Shares ended mixed on Thursday, with further profit-taking in telecommunications company PT Telkom keeping the main index in negative territory, dealers said.

Overall sentiment was weak with many investors moving to the sidelines following losses on Wall Street overnight after the Organization of Petroleum Exporting Countries (OPEC) decided to cut its oil production ceiling.

"It's a healthy correction after Wednesday's gains," said a trader with a local brokerage firm. The main index rose 2.9 percent to hit a 43-month closing high on Wednesday.

The Jakarta Stock Exchange Composite index ended down 0.3 percent, or 1.915 points, at 603.708, up from an intra-day low of 598.604.

But, gainers led decliners 68 to 60, with 86 stocks unchanged.

Volume was 1.9 billion shares traded valued at Rp 871 billion rupiah.

On Wednesday, the Dow Jones Industrial Average fell 1.6 percent, while the Nasdaq dropped 3.1 percent.

Bellwether Telkom fell 5 percent, or Rp 300, to Rp 5,700, on profit-taking after gaining 9.1 percent on Wednesday.

Profit-taking also hit retail company PT Ramayana Lestari Sentosa which lost 1.3 percent, or Rp 50, to Rp 3,950.

Shares in oil producer Medco Energi ended up 3.9 percent, or Rp 50, to Rp 1,325, on expectations of higher revenue from higher oil prices after OPEC decided to cut its crude output ceiling by 900,000 barrels a day.

Dealers said a slew of foreign investors bought other select blue chips, preventing the main index from falling further.

Cigarette maker PT Gudang Garam rose 3.6 percent, or Rp 400, to Rp 11,500, and its rival PT Hanjaya Mandala Sampoerna 0.5 percent, or Rp 25, to Rp 4,675.

Car maker PT Astra International rose 2.9 percent, or Rp 125, to Rp 4,500, on bargain hunting and expectations of higher car sales this year.

Dealers said they expect the market to trade flat or slightly lower on Friday on further profit-taking in telecommunications blue chips.

Meanwhile, the rupiah closed unchanged on Thursday as dollar demand from local companies was offset by capital inflows into the local stock market, dealers said.

The local unit closed at Rp 8,440 per dollar, after trading between 8,435 and 8,460.

Demand for the dollars is usually heavy in the run-up to the end of the month when local companies pay their offshore obligations.

But foreigners' stock buying that buoyed the local share market to a 43-month high on Wednesday also unleashed a flood of dollars into Indonesia.