Jakarta shares close sharply lower; oil price fears spark panic selling UPDATE
(Updating with analyst comment, share prices)
JAKARTA (XFN-ASIA) - Share prices closed sharply lower, with investors heavily selling off shares across the board on fears that the unrelenting rise in world oil prices would lead to a fuel price hike in the domestic market, a weaker rupiah and higher interest rates, dealers said. The composite index dropped 35.695 points or 3.09 pct, one of the biggest one-day falls in the Jakarta Stock Exchange's history, to close at 1,118.274.
Volume was 1.68 bln shares worth 1.54 trln rupiah.
The rupiah was at 9,880/9,885 to the dollar, down from Friday's close of 9,800/9,810. The LQ45 index was down 8.562 points at 244.790. Declines led advances 144 to 6, while 38 stocks were unchanged. "We see the index's next support level at 1,113 points. If it breaks that level (tomorrow), we may have to revisit the 1,050 level," said Mohamad Reza, an analyst with Kuo Capital.
"Everything is against the market at the moment. The oil price, (the impending domestic) fuel price (hike), the interest rate, the rupiah -- they are not supporting the stock market," said Felix Sindunata, an analyst with Pacific Duaribu Investindo. He said after today's fall, he still expects some follow-through selling pressure in coming days.
"As long as the uncertainty about the fuel price hike prevails and the rupiah's weakness continues, sentiment will remain negative. But the index may not drop as drastically as it did today," he said.
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