Indonesian shares closed 0.2 percent lower on Thursday after energy-related stocks and coal miners bounced back late afternoon on hopes of continued high commodity prices, dealers said. Banks and property stocks were mostly lower amid fears that record oil prices would add upward pressure on domestic inflation, raising the likelihood of further rate hikes by the central bank in coming months.
The Jakarta Composite Index closed down 5.77 points at 2,376.93, off a low of 2,345.87. Decliners led gainers 114 to 77, with 63 stocks unchanged. Volume was 3.11 billion shares valued at 4.60 trillion rupiah (496.76 million dollars). The Indonesian rupiah was trading at 9,250/9,260 to the dollar, weakening from 9,223/9,233 late Wednesday.
Valbury Asia Securities analyst Reny Susanti said the market traded lower for most of the day as players cashed in gains from the market's strong rally last week.
"However, buying interest in energy-related stocks such as coal miners and oil producers resurfaced in the late afternoon session, helping offset broad market falls," Susanti said. Susanti said mining contractor Darma Henwa enjoyed gains on market rumours that the company was on the list of acquisition targets by coal producer PT Bumi Resources.
Darma Henwa surged 34.3 percent to 470 rupiah while oil and gas service company Elnusa gained 10.8 percent to 360. Bumi Resources added 4.3 percent to 7,300, and its peer Bukit Asam added 1.8 percent to 11,500.
Among key decliners, index heavyweight Telkom fell 2.9 percent to 8,500 and conglomerate Astra International declined 3.8 percent to 20,450. Indonesia's largest bank by assets, Bank Mandiri, dropped 1.7 percent to 2,850 and Bank Danamon lost 2.4 percent to 6,100 while Bank Central Asia ended flat at 3,175, after falling to 3,125.