Jakarta stocks closed weaker on Thursday as concerns about interest rate rises weighed over the market and weakness in the Indonesian rupiah currency encouraged foreign investors to sell.
The Jakarta composite index ended down 1.6 percent at 746.12 points on Wednesday, its sixth consecutive daily fall and a slide of almost nine percent since a record closing high last Tuesday.
Turnover was estimated at 1.3 trillion rupiah ($149 million), with losers outpacing gainers by 100 to 28, while 68 issues were unchanged.
"The stock market is still going down and probably the number one reason is the rupiah currency," said Mandiri Sekuritas analyst Arwani Pranadjaya. Weakness in the rupiah reduces the returns achieved by foreign investors. The rupiah was bid at 8,704 in late afternoon trade on Thursday, compared to around 8,680 on Thursday a week ago.
Indonesia's largest phone company, PT Telekomunikasi Indonesia Tbk, closed down 5.1 percent at 7,500 rupiah and Indonesia's fifth largest bank, PT Bank Danamon Tbk, slipped 7.8 percent to 2,950 rupiah.
Cigarette company PT Gudang Garam Tbk closed up 2.3 percent at 13,600 rupiah, ending its recent downward slide.
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