Stock prices end lower on news of SBI rate rise

JAKARTA (JP): Prices on the Jakarta Stock Exchange (JSX) reversed their upward trend yesterday on news of the increase in interest rates on Bank Indonesia's promissory notes (SBI), brokers said.

The brokers said buying dominated the market in early trade but was not sustained as investors sold their stocks to get quick cash.

"Many investors sold their stocks to benefit from the increase in interest rates. It really killed the positive market sentiment," a broker with Trimegah Securities said.

The central bank, Bank Indonesia, raised its one-week SBI rate to 43 percent from 25 percent, the 14-day SBI rate to 44 percent from 24 percent, the one-month rate to 45 percent from 22 percent; the three-month rate to 30 percent from 19 percent; the six-month rate to 20 percent from 18 percent; and the one-year SBI rate to 18 percent from 16 percent.

Stock analysts said the interest rate hike pushed up the battered rupiah.

The currency closed at 8,950 to the American dollar yesterday, 7.7 percent higher than its close last week at 9,700.

The JSX Composite Index closed 0.41 points lower at 516.32 points with a total turnover of 926.54 million shares changing hands on the regular market worth Rp 835.20 billion (US$93.93 million) yesterday.

Brokers said the main price index rose 1.8 percent in early trade and then fell in the afternoon due to the change in the market trend.

Other Asian share prices closed mixed yesterday with Hong Kong and Tokyo posting modest gains after profit-taking swept both bourses amid a lack of strong direction, dealers said.

In Hong Kong, the Hang Seng index was up 30.10 points at 11,594.33, off an early low of 11,488.91 and an early high of 11,671.70.

In Tokyo, the key Nikkei stock average of 225 selected issues on the Tokyo Stock Exchange rose 38.36 points to end the session at 16,868.83, while the broader Topix index of all first section issues edged down 4.57 points to 1,250.49.

In Australia, the main indicator, the All Ordinaries index, closed 4.1 points higher at 2,779.3, pipping by 0.1 point the previous highest close, reached jointly on Sep. 25 and Oct. 1 last year.

In Singapore, the Straits Times Industrials lost 18.67 points to end trading at 1,660. 44, while the broader All-Singapore index fell 2.07 points to 431.69.

In Kuala Lumpur, the 100-share weighted composite index rose 4.55 points to end at 735.79. The lesser second board climbed 1.99 points, or 1.1 percent, to 187.20.

In Bangkok, the Stock Exchange of Thailand composite index ended the day up 3.92 points at 503.67 in thin trade, also buoyed by a stronger baht, while the selected SET 50 index closed 0.42 firmer at 37.13.

In Manila, the Philippine Stock Exchange index gained 35.92 points to close at 2,310.06.

In Seoul, the composite index closed down 9.72 points at 511.90.

In Shanghai, the B share index fell 0.73 points to close at 54.99 points while the A share index of locally-traded stocks ended down 7.88 points, or 0.6 percent, to 1,243.68 points.

In Taipei, the Taiwan Stock Exchange weighted price index dropped 98.47 points to 8, 757.59.

In New Zealand, the NZSE-40 ended down 30.75 points at 2,319.27. (aly)