In Jakarta the JCI lost 12.35 points, or 0.3 percent, to close at 3,744.62. Volume was heavy with about 10.6 billion shares valued at Rp 10.9 trillion ($1.22 billion) changing hands. Decliners outnumbered gainers 138 to 79.

Taking into account the JCI’s 47 percent gain this year, the decline was a normal correction, said Budi Ruseno, an analyst at HD Capital.

Shares in property developer Agung Podomoro Land debuted on the stock exchange on Thursday, rising 12.3 percent to Rp 410.

The company raised Rp 2.24 trillion in its initial public offering last week.

Executives said 35 percent of the proceeds from the float would be used to pay off debts.

“I believe selling shares on the stock market will help improve the company’s integrity and governance,” said Tarihatma Kusuma Haliman, founder of the Agung Podomoro Group.

Krakatau Steel continued its strong gains after it soared 49.4 percent on debut on Wednesday, surging a further 5.5 percent to close at Rp 1,340.

Finance stocks fell, however, with Bank International Indonesia, the biggest overseas unit of Malaysia’s largest lender, Maybank, losing 1.6 percent to Rp 600. Bank Central Asia, the nation’s top lender by market value, declined 1.4 percent to Rp 6,950.

International Nickel Indonesia, the country’s largest producer of the metal, fell 1 percent to Rp 4,925, dropping for the sixth straight day.

Nickel futures fell 1.9 percent to $24,155 a metric ton in London on Wednesday, the sharpest decline since Oct. 27.

The rupiah inched down to 8,897 against the US dollar at the market’s close.

Mika Martumpal, a senior market analyst at Bank Commonwealth, said the central bank would continue to seek to reduce volatility in the market, tempering gains in the rupiah.

“The rupiah is gradually appreciating because Bank Indonesia prefers a stable currency,” she said.

According to stock exchange data, the rupiah has strengthened 5.7 percent against the dollar this year with global funds having bought $2.3 billion more Indonesian stocks than they sold.

Posted by Shayne Heffernan on Nov 11th, 2010and filed underAnalysis, ASEAN News, Asia, Emerging Markets, Equities, Foreign Exchange, In Depth, Indonesia, Latest News, Rates & Bonds, Shayne Heffernan, Special Reports, Stocks.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site