Indonesian shares prices closed sharply lower on Tuesday, falling 2.19 percent as the overnight fall on Wall Street and a weakening rupiah weighed on sentiment, dealers said. They said the decision by some investors to cash in gains also follows the market's recent run up to record levels.
The Jakarta Stock Exchange composite index closed down 37.849 points at 1,691.084 on volume of 2.23 billion shares valued at 2.19 trillion rupiah (238.43 million dollars).
Decliners led gainers 128 to 33, with 48 stocks unchanged. The rupiah was trading at 9,180/9,185 to the dollar, compared to 9,135/9,140 late Monday. "Wall Street's slump overnight and the subsequent fall in regional markets drove down our market today," Rifki I. Hasan, an analyst at PT Paramitra Alfa Sekuritas said.
He added that investors used the poor performances of external markets as an excuse to cash in gains after the main index rallied to record levels, adding there was no negative domestic news triggering the selling. Telkom fell 250 rupiah to 9,750 while rival Indosat fell 150 to 5,600.
Astra International lost 550 at 15,700, its unit United Tractors was down 300 at 6,250 and Medco was down 50 at 3,250. Bank Mandiri was down 100 at 2,625, Bank Central Asia lost 300 to 5,150 and Bank Rakyat Indonesia fell 250 to 5,300. Among gainers Perusahaan Gas Negara, rose 50 to 10,700, Total Bangun Persada gained 10 to 710 and Inco gained 200 to 27,350. Energi Mega ended flat at 510, after falling to 490, following news of the cancellation of the sale of its unit Lapindo Brantas Inc to Freehold Group Ltd.