Jakarta shares decline

Indonesian share prices closed 1.32 percent lower on Monday led by Astra International as investors sold it off on concerns its second half profitability would be hit by rising energy costs, dealers said. They said the continued rise in world oil prices and this week's likely rate hike by the US Federal Reserve added to the selling pressure.
The Jakarta Stock Exchange composite index closed down 15.504 points at 1,158.586 on volume of 1.44 billion shares valued at 1.25 trillion rupiah (128.40 million dollars.)
Decliners outnumbered advancers 89 to 23, with 83 stocks unchanged.
The rupiah was at 9,775/9,780 to the dollar compared to Friday's close of 9,742/9,749.
"Astra International pulled the market down," said Mega Capital Indonesia analyst Dwika Sari.
Sari said investors were concerned Astra's second-half earnings may not be as strong as anticipated amid speculation that the company's revenue for the month of July was disappointing.
"There have been rumours about this decline in July revenue but it (second-half earnings) is difficult to predict based only on this one-month performance," she said. Sari said investors were also concerned about the continued rise in world oil prices as it would drive up fuel subsidy spending and further widen the state's budget deficit.
Although the market widely expected the US Fed to raise its key rate by another 25 basis points on Tuesday, investors were concerned such move may also prompt Bank Indonesia to raise its own benchmark rate to above its current forecast until September of 8.5 percent, Sari said.
In last week's auction, the benchmark rate for the one-month Bank Indonesia Certificates (SBIs) stood at 8.5 percent.
Astra lost 550 rupiah to 11,800 rupiah while its heavy equipment unit United Tractors gained 50 rupiah to 4,575 rupiah.
Telkom was down 150 rupiah at 5,350 rupiah and Indosat shed 100 rupiah to close at 5,500 rupiah.
State-owned Bank Mandiri was down 10 rupiah at 1,650 rupiah, Bank Rakyat Indonesia turned flat at 2,975 rupiah and Bank Central Asia lost 50 rupiah to close at 3,625 rupiah.
Gas distributor Perusahaan Gas Negara fell back 25 rupiah after rising sharply last week, while cigarette firm Gudang Garam was down 250 rupiah at 12,450.
Sari said the market may extend its fall tomorrow on a lack of positive news to trigger a rebound.