20000325

Jakarta stocks close lower, Astra falls

JAKARTA: Jakarta shares closed lower on Friday as investors sold off Astra International on news a roughly 40 percent stake in the firm had been sold at 3,700 rupiah per share, below most investors' expectations.

The Jakarta composite index closed down 4.53 points, or 0.8 percent, at 581.47 points.

Astra shares were down 75 rupiah, or two percent, at 3,650 on 42.8 million shares traded. "Well, I think 3,700 was quite low as investors expected the price to be above 3,700 or around 4,000 rupiah," one dealer said.

A consortium including Singapore-based car retailer Cycle & Carriage won bidding for 39.5 percent of Indonesia's Astra International with an offer of 3,700 rupiah per share to the Indonesian Bank Restructuring Agency (IBRA).

The consortium includes C&C, Lazard Asia Fund and Bhakti Investama, an Indonesian investment fund in which international financier George Soros holds a stake.

The Government of Singapore Investment Corporation (GIC) is participating as co-investor in the bid.

Astra has been the market focus over the last few days not only because of the value of the stake sale but also because IBRA's success in selling the Astra stake is considered a milestone for the country in attracting foreign investors.

Second-line stocks led by Bhakti Investama, which joined the winning consortium, dominated the market following the announcement of the winner of the Astra stake.

Bhakti Investama closed up 100 rupiah, or 8.9 percent, at 1,225 on 64.4 million shares traded.

Newly-listed fishery company Dharma Samudera rose 250 rupiah to 1,150 on its debut on 87.4 million shares traded.

Some 180 shares were traded with losers leading gainers 73 to 29 on turnover estimated at 807 billion rupiah.-Reuters