Indonesian share prices closed a volatile on Monday session 0.1 percent lower as some players cut positions on the eve of the keenly awaited US Federal Reserve monetary policy meeting, dealers said. They said falls came amid a broader regional sell-off after subprime lending issues re-surfaced amid a run on British lender Northern Rock.
The Jakarta Stock Exchange composite index closed down 2.39 points or 0.1 percent at 2,223.22, off a high of 2,236.13 and a low of 2,209.20. Volume was 4.80 billion shares valued at 2.72 trillion rupiah (289.67 million dollars).
The Indonesian rupiah was trading at 9,385/9,390 to the dollar, compared to 9,380/9,384 late on Friday. Decliners beat gainers 106 to 82, with 65 stocks unchanged. Paramitra Alfa analyst Miranda Hotmadia said the market was up for much of the day, before some late profit-taking emerged.
"Some players decided to lock in gains in the late afternoon, dragging the market into negative territory, due to caution over the outcome of the Fed meeting tomorrow (Tuesday)," Hotmadia said.
Gas distributor Perusahaan Gas Negara fell 200 rupiah to 10,650, Bukit Asam lost 50 to 5,950, tin miner Timah shed 50 to 11,650 and Inco lost 1,050 to 59,050, all hit by profit-taking after recent gains. Astra International surged 500 to 18,500 and coal producer Bumi Resources rose 50 rupiah to 3,025.
Telecom stocks were also in focus ahead of the Indonesian government's announcement of the winner for a new international direct dialing (IDD) license. After the market close, the government said Bakrie Telecom has been awarded the third IDD license, beating the other bidders, Excelcomindo Pratama and Natrindo Telefon Selular.
Telkom and Indosat are the only players in Indonesia's IDD market at present. Bakrie Telecom closed up 15 at 390, while Excelcomindo was unchanged at 2,025. Telkom rose 50 to 10,700, while its rival Indosat added 50 to 7,050.
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