Indonesian shares closed 2.3 percent lower on Wednesday on fading investor hopes for a sustainable stock market recovery and bearish performances from other Asian markets, dealers said. The Jakarta Composite Index fell 35.56 points to 1,520.41 on moderate volume, down from an intraday high of 1,598.19. The rupiah closed at 9,770 to the dollar compared to 9,750 the day before.
"Concerns over the global credit crisis triggered some institutional funds to swiftly cash in gains to prepare for the worst," a dealer told Dow Jones Newswires. Top decliners included nickel miner Inco, which dropped 10 percent to 2,250 rupiah, and heavyweight equipment company United Tractors, which fell 10 percent to 5,850 on fears of weak 2008 sales due to falling demand. Dealers expect shares to continue to fall Thursday on further profit-taking.