Indonesian share prices closed flat on Wednesday ahead of the central Bank Indonesia's interest rate meeting this week with telecoms and select banks pressured by some profit-taking, dealers said. But overall sentiment remained positive as June inflation came in within range, boosting hopes for a rate cut at the Tuesday BI meeting, they said.
The Jakarta Stock Exchange composite index was up 0.455 points or 0.03 percent at 1,338.323, on volume of 1.036 billion shares valued at 1.411 trillion rupiah (154.71 million dollars). The rupiah was trading at 9,120/9,130 to the dollar against Tuesday's level of 9,070/80. Gainers narrowly led losers 52 to 51, with 69 stocks unchanged.
Satrio Utomo, an analyst with Recapital Securities, said that while overall sentiment remained positive, some investors decided to take profit ahead of the BI's board meeting.
He said the general market expectation is that Bank Indonesia will cut the benchmark BI rate, with some investors opting to wait it out or realize profits ahead of the meeting.
Falls in most regional markets Wednesday and a slight weakening in the rupiah in the afternoon session also prompted investors to reduce their holdings for quick profit. "Overall, our short-term view is that the market is still trending upward with a limited downside," he said. Among major stocks, Telkom was down 50 rupiah at 7,350 while Indosat was down 25 at 4,325.
Bank Mandiri was up 70 at 1,800 on speculation that the government has approved its plan to set up a special purpose vehicle company (SPV) to settle its non-performing loans. Bank Rakyat Indonesia was down 25 at 4,275 and Bank Central Asia was also down 25 at 4,275. Bakrie Sumatra was up 70 at 1,050, London Sumatra was up 350 at 4,025 and Astra Agro was up 250 at 6,950.
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