20000129

Jakarta stocks end down on domestic worries

JAKARTA: Weak domestic sentiment drove Jakarta stocks lower on Friday with blue chip shares leading the decline on persistent concerns about political stability.

The benchmark composite index closed down 9.98 points or 1.56 percent at 634.67, on turnover estimated at 1.04 trillion rupiah.

The index has been moving in a sharp downtrend in the past two weeks, losing almost ten percent.

Dealers said the market was worried tension between President Abdurrahman Wahid and the military could escalate following his latest move to retire from military service generals holding cabinet posts.

"Some fear that while Gus Dur (Wahid) is away, some unhappy generals would provoke a military coup, as early as the weekend," said a market strategist from a local brokerage.

"So if nothing bad happens during the weekend, we should see some rebound next week".

Wahid left the country early on Friday for a two-week overseas trip. On the eve of his visit, he dismissed rumours of a possible military coup during his absence.

Support for the index is seen at 630 and resistance at 650, then 700.

Worldwide excitement over Internet-related stocks has sent Indonesian technology stocks surging in the past two months, and dealers said recent week losses in technology stocks would give the opportunity for investors to start looking at the shares again.

Among the blue chip stocks leading the declines were benchmark Telkom, which lost 75 rupiah or 1.9 percent to 3,875 and cigarette firm HM Sampoerna, down 725 rupiah or 4.43 percent to 15,625.

Trading in pulp and rayon fibre maker Indorayon resumed in the afternoon after being suspended by the bourse earlier, following a 50 percent jump in the stock price to 600 rupiah. Indorayon closed at 425 rupiah, up 6.9 percent or 25 rupiah.

Dealers said there was speculation the government would not close Indorayon's troubled-operations in North Sumatra over environmental problems.-Reuters