Jakarta shares lower

Indonesian share prices closed 1.5 percent lower on Friday on worries over the US subprime credit crisis although the main index came off its lows, dealers said. They said investors found some comfort from a statement made by the head of the country's capital market watchdog that the meltdown in the US subprime mortgage market was unlikely to have any impact on the Indonesian economy.
The Jakarta Stock Exchange composite index closed down 34.01 points at 2,207.40, off a low of 2,155.92 and a high of 2,207.40. Volume was 3.2 billion shares valued at 3.07 trillion rupiah (329 million dollars). The rupiah was trading at 9,335/9,345 to the US dollar, down from 9,310/9,320 late Thursday.
"The market nose-dived at the opening as investors were concerned that the US subprime crisis may have a wider impact than expected," Recapital Securities analyst Satrio Utomo said. "The main index, however, closed off its lows as I think investors saw that the market's slump by more than three percent at the opening was overdone," he said.
"I think statements made by senior government officials that the US subprime crisis has no direct impact on our banking system and economy helped ease investors' worries," he said. Bank Indonesia research director Halim Alamsyah said earlier today that the Indonesian banking system should be shielded from any direct fallout from the US subprime mortgage market woes as local banks do not have any exposure to it.
Perusahaan Gas Negara fell 50 rupiah, or 0.5 percent, to 10,500, off a low of 10,000 and coal producer Bumi Resources lost 50 rupiah, or 1.9 percent, to 2,550, off a low of 2,400. Index heavyweight Telkom turned flat at 10,900, after falling to 10,400, and rival Indosat lost 200, or 2.7 percent, at 7,100, off a low of 7,000.
Bank Mandiri, the country's largest bank in assets term, fell 75 rupiah, or 2.3 percent, to 3,175, off a low of 3,075 and Bank Central Asia gave up 150, or 2.4 percent, to 6,000, off a low of 5,850. Automotive producer Astra International was down 400 rupiah, or 2.3 percent, at 17,350, off a low of 17,000.