Shares fall again, rupiah weakens

Shares fall again, rupiah weakens

JAKARTA (JP): Heavy selling continued on the Jakarta Stock
Exchange yesterday with the Composite Index losing another 3.5
points to close at 666.84

Securities analysts attributed the loss on an overnight drop
on Wall Street and fears of a possible rise in the U.S. interest
rates.

In the currency market, the rupiah lost ground against the
dollar in solid trade.

Spot rupiah prices were between 2,401.60/02.00 in afternoon
trade after opening at 2,399.50/400.50.

"Liquidity in the banking system remained high with overnight
call money hovering low at between five to six percent," one
foreign bank dealer said.

The Indonesian rupiah fluctuated against the dollar in thin
trading on Friday as operators were cautious in the wake of the
central bank's surprising recent moves, dealers said.

The recent moves included the central bank's decision to cut
its key discount rates for short-term securities (SBPUs) by 50
basis points on Wednesday.

The central bank also increased its fixing rates by two points
on Wednesday and lowered them by one point on Thursday.

Stock trading analysts said concerns that Bank Indonesia's
credit restrictions would affect banks' earning projections
affected the stock market

"It is just like yesterday, many investors sold their banking
shares," a dealer said.

The country's largest bank, Bank Negara Indonesia, lost Rp 75,
Bank International Indonesia fell 75 rupiah, Lippo Bank dropped
Rp 100, Bank Papan lost Rp 350 and Bank PDFCI Rp 100.

Several nonbank blue chips gained ground saving the
share market from a steeper fall.

Car maker Astra International's shares rose Rp 50, cigarette,
maker Gudang Garam gained Rp 25 and Indofood rose Rp 175. (hen)