Thursday May 8, 04:47 AM
Indonesian shares open lower after Wall St falls on record oil price - UPDATE
JAKARTA (Thomson Financial) - Indonesian shares were lower in early trade on Thursday as investors cashed in gains from the market's rally over the past week following losses on Wall Street overnight.
The Dow industrials fell more than 200 points after crude oil surged to a new record near $124 a barrel, reviving inflation fears.
Gains in coal miners Bumi Resources and Bukit Asam helped trim the market's losses.
At 10:03 a.m. (0303 GMT), the Jakarta composite index was down 7.29 points or 0.3 percent at 2,375.40, off a low of 2,360.38.
The LQ-45 index was down 2.04 points at 509.68.
'The falls in external markets appeared to have encouraged some players to realize profits. I would say this is a healthy correction as the market rallied strongly earlier this week,' Kresna Securindo analyst Gifar Indra Sakti said.
Market players also chased select second line stocks on expectations they will distribute dividends from their 2007 earnings, he said.
Index heavyweight Telkom fell 1.1 percent to 8,650 rupiah, Bank Rakyat Indonesia declined 1.6 percent to 6,150 rupiah and Perusahaan Gas Negara declined 0.4 percent to 13,500 rupiah.
Among gainers, Bumi Resources rose 0.7 percent to 7,050 rupiah and its peer Bukit Asam added 2.2 percent to 11,550 rupiah.
Mining contractor Darma Henwa surged 15.7 percent to 405 rupiah and oil producer Medco Energi rose 1.2 percent to 4,300 rupiah.
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