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Jakarta stocks end lower amid worries of unrest

JAKARTA: Jakarta stocks ended lower on Monday amid slow trade and dealers said concerns about violence and political uncertainty had snuffed out any euphoria from last week's budget and new IMF deal.

The composite index closed down 7.97 points, or 1.2 percent, at 656.72 on an estimated 940 billion rupiah turnover.

"The political situation is still the main concern and we are not seeing a lot of interest today," said one dealer at an international brokerage in Jakarta.

Stocks from Lippo group dominated trading in the afternoon on speculation, later confirmed, that Lippo E-Net was going to sign a memorandum of understanding (MOU) with U.S. computer giant Microsoft soon.

Lippo E-Net's investor relations head Andreas Azis Chandra told Reuters a preliminary deal is about to be signed with Microsoft, but declined to give a date or details of the extent of the cooperation between the two.

Lippo E-Net closed up 75 rupiah, or more than 13, percent at 650, while Multipolar another Lippo firm shifting into the Internet business rose 75 rupiah to 950.

Oil stocks were also active, with Medco Energi up 375 rupiah or 7.2 percent at 5,575 rupiah and Petrosea up 75 rupiah or 2.26 percent to 3,400.

Dealers said market talk of imminent deals in the sector had boosted the shares.

Fresh religious violence in the spice islands at the weekend left 25 dead, the military said. Dealers said the violence, and fears it could spread, were hanging over the market.

Unrest last week in the tourist island of Lombok, near Bali, has also kept stocks under pressure.

Vice-President Megawati Sukarnoputri was due to arrive in the spice islands later on Monday on a visit aimed at trying to resolve the problems there. President Abdurrahman Wahid visits the restive province of Aceh on Tuesday.-Reuters