Jakarta stocks edged lower on Thursday as profit taking in some key shares kicked in after recent strong gains, but the positive trend ahead of the September 20 presidential election remains intact, analysts said.
The Jakarta Composite Index finished 0.3 percent lower at 813.06 points in fairly moderate trade estimated at 605.7 billion rupiah ($66.37 million).
The slight correction comes after a four percent rise in the past five trading days despite last week's bomb blast outside the Australian embassy in Jakarta, which killed nine and wounded more than 180.
"If we observe the market, the buying power remains high. However, profit taking hit some shares which had risen sharply in the past few days," said Fendi Susiyanto, an analyst at BNI Securities.
Banking shares, which gained significantly on Wednesday, were hit by profit taking.
The country's fourth-largest bank, PT Bank Rakyat Indonesia Tbk, fell 2.5 percent to 1,950 rupiah, while number two lender PT Bank Central Asia fell 1.23 percent to 2,000 rupiah. Indonesian stocks have been attacking record levels this week and analysts see more gains provided next week's presidential election goes peacefully and the front runner turns out to be as market friendly as hoped.
Frontrunner and former chief security minister Susilo Bambang Yudhoyono faces his former boss, incumbent President Megawati Sukarnoputri, for the country's top job. The rupiah currency was being quoted at 9,005/9,020 to the dollar late on Thursday, stronger compared to late Wednesday's level of 9,091/9,101. It managed to hit 8,985 in late trading, its highest since July.
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