Jakarta shares 4.4 percent down

18 Oct, 2008

Indonesian shares ended 4.4 percent lower on Friday, weighed down by falls in other Asian markets amid fears about the credit crunch, dealers said. The Indonesia Stock Exchange's main index fell to 1,399.42 in thin volume, off an intraday low of 1,391.27.
"The high interest rate environment and suspension of shares of Bakrie-related stocks have dried liquidity in the market, forcing some big investors to cash in their equity assets," Andalan Artha Advisindo fund manager Rifki Isnaini Hassan told Dow Jones Newswires.
Trading was resumed in three of six companies under the Bakrie & Brothers group on Friday for the first time since they were suspended on October 7 amid a broad market selloff. The other three Bakrie stocks that remain suspended are coal miner Bumi Resources, diversified holding company Bakrie & Brothers and energy company Energi Mega Persada.
Tight liquidity and fears that banks would report lower earnings also triggered selling in bank and financial-related stocks. The shares for Bank Mandiri, the nation's largest bank by assets, fell 9.6 percent to 1,875 rupiah while Bank Rakyat Indonesia shed 9.6 percent to 3,850 rupiah.

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