Stock prices at JSX end lower in moderate trading

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)