06/07/2011 (Jakarta Globe) - Indonesia’s benchmark index fell on Tuesday, as investors cashed in following three days of record gains.

The Jakarta Composite Index dropped 29.39 points, or 0.7 percent, to close at 3,924.13. About 5.4 billion shares valued at Rp 6.52 trillion ($763 million) changed hands. Decliners beat gainers by 112 to 50. Foreign investors bought Rp 80 billion more in shares than they sold, down from Rp 4.4 trillion on Monday.

The JCI had gained 3.7 percent in the previous three trading days — during which it closed at record levels — amid optimism that Greece would avoid a default following its Parliament’s approval of key austerity measures.

Investors had also been encouraged by data released on Friday that showed inflation in Indonesia slowed in June.

“This is purely profit-taking,” said Bagus Hananto, head of research at ONIX Capital. “The recent advances led investors to sell their shares.”

Bagus said trading on Tuesday was dominated by shares of large market capitalization companies. The so-called miscellaneous industry sector, which includes Astra International and Indomobil Sukses International, fell the most, losing 2.9 percent.

Astra International, Indonesia’s largest auto manufacturer, lost 3.2 percent to Rp 66,300, after a climbing 8.6 percent over the last five days. Indomobil Sukses International dropped 5.7 percent to Rp 9,100, paring a close to 20 percent gain on Monday.

Palm oil producers dropped after crude palm oil futures for September delivery fell by 10 percent on Bursa Malaysia, which may affect profitability. Astra Agro Lestari, Indonesia’s largest listed plantation company, lost 0.2 percent to Rp 23,250, while Salim Ivomas Pratama fell 1.6 percent to Rp 1,200.

The rupiah traded 0.2 percent lower at 8,535 against the dollar as the US currency rebounded.