Stocks down amid street protests

Agencies, Jakarta

Shares ended lower Monday on selling across the blue-chip board, and were weighed down by concerns about street protests against the recent hikes of fuel prices, and electricity and telecommunications tariffs, dealers said.

The Jakarta Stock Exchange Composite index ended down 2.3 percent, or 9.265 points, at 398.247, but up from an intraday low of 393.897.

Decliners led gainers 96 to 14, with 49 stocks unchanged.

Volume was 292 million shares valued at Rp 357 billion (US$40.11 million).

Hundreds of students and other demonstrators held a demonstration on Monday demanding the government cancel the hikes.

The demonstrations may escalate on Thursday when workers and members of the business community are expected to take part.

"Selling was strong," a trader with a foreign brokerage firm told Dow Jones, adding the market may fall further in coming days if the demonstrations turn violent.

The government raised fuel prices by up to 22 percent last week as part of a continuing effort to reduce costly fuel subsidies and contain the budget deficit.

Panin Securities dealer Nico Suherman told AFP the sharp fall in the benchmark index was mostly due to profit-taking after the broad-based gains made in December, although concern over the utility tariff increases also added to the selling pressure.

Nico said he expected gains in the next day or two as the market was perceived as oversold following the losses of the past three trading days.

Telecommunications blue chips were among the decliners.

Telkom lost 4.7 percent, or Rp 175, to Rp 3,550, despite the government increasing telecommunications tariffs by an average of 15 percent on Jan. 2. Dealers said concerns the government may cancel the telecommunications tariff hikes due to public opposition has hurt sentiment toward these shares.

Indosat dropped 5.1 percent, or Rp 450, to Rp 8,300 on concerns about possible further protests by its workers to oppose the recent sale of the government's 41.94 percent stake in Indosat to Singapore Technologies Telemedia.

Dealers said investors sold their shares in other blue chips on expectations they will book lower earnings due to a decline in consumer spending after the hikes in fuel prices and other tariffs.

Cigarette-maker Gudang Garam lost 3.8 percent, or Rp 300, at Rp 7,550 and cement-maker Semen Gresik fell 2 percent, or Rp 150, to Rp 7,450.

Dealers said selling was also on further profit-taking after recent gains due to year-end window-dressing.

Meanwhile, the rupiah was slightly lower on Monday amid dollar demand from corporations. Near the end of Asian trading the rupiah was quoted at Rp 8,935 per U.S. dollar, compared to Rp 8,915 late Friday.

There were also some concerns in the financial market that the street protests could get out of hand.