Jakarta stocks edged lower on Monday weighed down by mild profit taking, but buying interest remained strong on selective blue chips and banking stocks. The Jakarta Composite Index eased 0.12 percent to close at 964.09 points in active turnover of around 1.3 trillion rupiah ($147 million). Losers led gainers 76 to 50, while 82 issues were unchanged.
But dealers predicted shares would stay strong in the near-term, despite already gaining some 39 percent so far this year. The index has been Asia's second-best performer after Sri Lanka on optimism over the economic outlook under a new government that took power last month. "It's a mixed performance. Niaga is the most active stock today, but the price fell because of share placement," said a local dealer.
Indonesia's ninth-largest bank PT Bank Niaga Tbk fell 2.13 percent to end at 460 rupiah, after soaring some 34 percent since the end of last month.
The government said on Monday it had opened bidding for up to 16 percent of the bank. The sale was aimed at helping cover this year's budget deficit.
Many banking stocks rose and the sectoral index advanced 0.58 percent. Some dealers had said banks were expected to be a positive force contributing to real sector growth next year.
Among the biggest gainers were the country's second-biggest bank, PT Bank Central Asia Tbk, which jumped 3.8 percent to 2,725 rupiah.