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Jakarta stocks close lower, await FOMC meeting

JAKARTA: The Jakarta stock index closed lower on Monday, with players reluctant to take fresh positions ahead of Tuesday's US Federal Open Market Committee (FOMC) meeting.

The Jakarta composite index closed down 5.98 points, or one percent, at 584.88 points. Some 188 shares traded with losers leading gainers 65 to 34.

Dealers expect the US Federal Reserve policy-setting meeting to boost interest rates by a quarter of a percentage point.

"The market was still focusing on individual company news today including Astra International," said one dealer with Trimegah Securities.

The dealer said the index is expected to move in a range of 580-600 points early this week.

Diversified Astra International, the country's largest car maker, were up 25 rupiah at 3,800 on 9.7 million traded.

Dealers said Astra is expected to be the market focus this week ahead of the announcement by the Indonesian Bank Restructuring Agency (IBRA) on the winning bidder for a 40 percent stake in the company on Saturday.

Second and thirdliner stocks contributed notable trading volume today, one dealer said.

Pulp and paper company PT Indah Kiat was among the most active, but closed down 50 rupiah at 2,350 on 10.2 million traded on profit-taking after recent gains on the rising trend of pulp prices, one dealer said.-Reuters