BEI INDEX OPENS LOWER ON TOKYO STOCK LOSSES

Jakarta, Aug. 31 (ANTARA) - The Composite Stock Price Index (IHSG) at the Indonesian Stock Exchange (BEI) here on Friday morning opened lower as investors released their blue chip shares following Tokyo stock losses.

The BEI index went down 28.596 points or 1.20 percent to 2,348.938 points and the LQ-45 index weakened 1.36 percent or 6.311 points to 456.991.

The Indonesian stocks plunged because yen strengthened against the US dollar following the victory of Japan's opposition party, Alfiansyah, a stock broker of PT Sinarmas Securities, said here on Friday morning.

"We predict that the BEI index would continue to be under pressure because the negative sentiment is getting stronger," he said.

State telecommunication company PT Telkom shares fell Rp50 per share, Astra International shares dropped Rp200 to Rp29,850, Astra Agro Lestari shares weakened Rp250 to Rp21,400, and United Tractor shares lost Rp200 to Rp13,400 per share.

He estimated that those shares would further be released causing the Indonesian stocks continued to slump down in the morning trading session.

Foreign investors were very cautious while following the developments of Bank Century case which was being brought up by the House of Representatives (DPR), he said.

The DPR was shocked because the bailout for the troubled bank reached the amount of RP6.7 trillion from only around Rp2 trillion approved by the Parliament.

Meanwhile, the rupiah strengthened slightly against the US dollar in the Jakarta interbank spot market here early Monday as investors released the greenback.

The Indonesian currency traded at Rp10,050-Rp10,065 per US dollar, up 15 points from Rp10,065-Rp10,075 per US dollar at the market close last weekend.