Indonesian share prices plunged 3.6 percent on Monday as last week's plunge on Wall Street sparked a sell-off on the local market, dealers said. The Jakarta Stock Exchange composite index closed down 80.68 points at 2,189.11 on volume of 3.7 billion shares valued at 3.54 trillion rupiah (380.44 million dollars).
The rupiah was trading at 9,295/9,305 to the dollar, recouping some of its losses after having fallen to 9,350/9,360 at midday. Last Friday, the currency was trading at 9,270/9,275. Batavia Prosperindo analyst Santikno Suherman said the market suffered a major correction because of the sharp fall in Wall Street Friday and a weak performance in major East Asian markets.
"But I think our market's plunge today was overdone as our domestic economy remains solid and many companies announced strong results in the first six month of this year," Suherman said.
Margin calls also put downward pressure on the market, he said. The main index has fallen by 10 percent since July 24, when the market closed at its all-time high of 2,401.14. "I don't think many investors expected the market to suffer a major correction in just a short period," Suherman said.
Among major losers, state gas distributor Perusahaan Gas Negara fell 400 rupiah to 9,750, Bumi Resources dropped 125 to 2,375 and automotive producer Astra International lost 1,050 to 17,400. Index heavyweight Telkom fell 300 rupiah to 10,600 and rival Indosat lost 250 to 7,050.
Nickel miner Aneka Tambang dropped 175 rupiah or 6.8 percent, to 2,400, while rival Inco lost 1,450 to 54,200. Bank Mandiri, the country's largest bank in asset terms, fell 100 rupiah to 3,200 and Bank Central Asia lost 250 to 5,900.
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