Indonesian share prices closed 0.16 percent lower in directionless trade on Friday amid fears that local interest rates could rise further, dealers said.
The Jakarta Stock Exchange composite index ended down 1.724 points at 1,094.652 - off a high of 1,102.959 and a low of 1,084.355 - on volume of 780.50 million shares worth 958.72 billion rupiah (95.6 million dollars).
Declines led advances 51 to 43, while 77 stocks were unchanged.
The rupiah was 10,030/10,040 to the dollar compared to Thursday's close of 10,070/10,080.
Dealers said the index came off its lows thanks to sustained gains at Excelcomindo and Perusahaan Gas Negara (PGN), but it failed to maintain its intra-day highs amid profit-taking elsewhere.
"I would say that 1,100 points is a critical level. Over the past two days, investors have been trying to keep the index above that but failed. I am afraid we are heading lower now," said Hendra Riyadi, branch manager with Dongsuh Kolibindo.
He said the key concern centers on the interest rate which, despite the recent rapid increases, could even go up further to 12 or 13 percent through to the year-end due to the prospect of further US rate rises.
"Maybe some people will opt to take a wait-and-see strategy in the coming weeks so the market will tend to be mixed," Riyadi said.
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