Stocks extend decline as fear looms

Ika Krismantari , The Jakarta Post , Jakarta | Tue, 10/07/2008 6:55 PM | Business

Indonesia composite index extended its losses on Tuesday, down by 1.76 percent to close at 1,619.72 as worries over deepening global crisis still persist in the market, while Rupiah fell 2.96 percent to Rp 9,560.

Tuesday's trading saw 122 shares down, 36 were unchanged and 52 closed higher, StockWatch said after the closing of trading on Tuesday's afternoon.

The shares of PT Timah, the country's largest tin producer, and PT Aneka Tambang (Antam), are among the big gainers on Tuesday's trading to be closed at Rp 1,280 and Rp 1,160, or jump 12.28 percent and 9.43 percent, respectively.

The biggest loser is Indo Tambangraya Mega, a local unit of Thailand's largest coal producer, dropping 8.67 percent to Rp 15,800 (US$1.65) on the back of lower oil prices.

Bloomberg reported that crude oil futures plunged 6.5 percent to $87.81 a barrel in New York on Monday. A lower oil prices will reduce the investors' appetite for alternative fuels, such as coals.

Analyst from HDX capital Adrian Rusmana said that the Tuesday's drop proved that the negative sentiment from global and regional stock market over the possible global economy recession still persist even though Tuesday's trading was better than what happened on Monday, when the index plunged more than 10 percent, the lowest since the 2002 Bali bombings.

Analysts believed that the Tuesday's correction was mostly due to the market's positive sentiment over the government's decision to raise the interest rate for the sixth consecutiv times to 9.5 percent.

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