Stock prices at JSX end lower in moderate trading

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) closed marginally lower yesterday in moderate trading as investors took profits on the gains they made last week, stockbrokers said.

They said that the trading outlook on the local exchange was bleak for the whole day because most investors remained cautious while waiting for the conclusion of talks between the government and the International Monetary Fund (IMF).

"Most investors do not want to take any position in the local market," a broker with Trimegah Securindolestari said.

Brokers said that most foreign brokerage firms, who had been active in the local exchange late last week, did not make any significant transactions.

They said that Jardine Fleming Nusantara, Indosuez WICarr Securities, ABN Amro, SBC Warburg Securities made heavy buying orders yesterday while GK GOh Ometraco, ING Barings and Merill Lynch Indonesia were on the selling side.

"I think some foreign investors are on the sidelines ahead of the end of the fiscal year on Tuesday," the Trimegah broker said.

The financial market will be closed today to mark the end of the 1997/1998 fiscal year.

An analyst from Harita Securities Karman Pramurahardjo said that investors as well as brokers were anxiously waiting for the announcement of the results of talks between the IMF and the government to stabilize the ailing rupiah and to solve the private sector debt and battered banking system crises.

"If the outcome of discussions between the IMF and the Indonesian government addresses these three problems properly, investors will see sign a recovery in the local market for a while," he said.

IMF officials, who are in Jakarta to review the implementation of the economic reforms agreed in exchange for the IMF-led US$43 billion package, said yesterday that discussions with the Indonesian government were expected to be concluded this week.

The IMF director for the Asia-Pacific region, Hubert Neiss, said that discussions on monetary policy, which was one of the last major issues, should be completed today (Tuesday).

The JSX Composite Index closed down 0.67 of a point to end at 541.42 points.

Around 650 million shares valued at Rp 569 billion (US$66.16 million) changed hands on the regular market.

Brokers said the sharp gains in second-tier stocks, especially in the mining and banking sectors, in the afternoon session prevented a greater drop in the price index even though blue chip stocks like PT Telkom lost ground.

Telkom shed Rp 125 to close at Rp 4,125 on 4.22 million shares traded, automaker PT Astra International fell Rp 75 to close at Rp 2,150 on 18 million shares changing hands and cigarette maker HM Sampoerna dropped Rp 150 to Rp 7,850 on 3.30 million shares changing hands on the regular market.

The bearish sentiment in the stock market also permeated into the currency market with the rupiah ending slightly lower against the U.S. dollar in thin trading yesterday, currency dealers said.

They said the rupiah closed at 8,600 to the American dollar yesterday, 2 percent weaker than its close at 8,400 on Friday last week.

As with the stock market, dealers said the currency market was waiting for news from the meeting between the IMF and the government. (aly)