Stocks down amid street protests

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.