Jakarta Edges Down on Political Uncertainty Ahead of Polls

Bareksa.com - Indonesian shares edged down on Wednesday due to uncertainty over the upcoming presidential election, while other Southeast Asian markets traded rangebound
as escalating violence in Iraq eclipsed stronger economic data.

Property stocks led the fall in the Jakarta Composite Index with PT Bumi Serpong Damai falling over 2.3 percent.

The rupiah also fell to its weakest in more than four months on worries about the country's current account deficit amid higher oil prices and uncertainty over the coming
presidential polls.

Analysts and stockbrokers said the tight race in the presidential polls, scheduled on July 9, has been denting sentiment.

Other markets in the region traded rangebound with Malaysia falling from a record closing high hit on Tuesday, while Thailand edged up.

"There is lack of positive news on the economic front to boost sentiment," said Teerada Charnyingyong, a strategist with broker Phillip Securities.

Investors are waiting for the outcome of the energy reforms policy discussion, scheduled to be announced by the end of this month, Charnyingyong said.

"We will see thin volume of trading and foreign outflows until we see some clear directions."

Malaysia's Icon Offshore Bhd, whose ships offer support services for oil platforms, rose 12 percent in its market debut, with investors keen on its growth outlook given heavy capital spending plans by state oil firm Petronas.

Market Current Prev Close Pct Move
TR SE Asia Index* 423.66 424.69 -0.24
Singapore 3266.07 3262.03 +0.12
Kuala Lumpur 1889.31 1892.33 -0.16
Bangkok 1462.05 1460.92 +0.08
Jakarta 4850.55 4862.24 -0.24
Manila 6847.05 6793.07 +0.79
Ho Chi Minh 574.49 569.74 +0.83

(Source : Reuters)