Jakarta, Indonesia – Shares fell sharply Tuesday on continued selling pressure in large-capitalization shares, led by Telekomunikasi Indonesia in moderate dealings.

The Jakarta Stock Exchange Index fell 11.495, or 1.7%, to its lowest level this year at 659.441. Decliners outnumbered gainers 103 to 38 with 43 shares unchanged, and 72 stocks were untraded.

Trading volume was 243 million shares valued at 579 billion rupiah, according to a local securities house.

Telkom dropped 175 rupiah to 3,650 rupiah, with 44.2 million shares traded. Bank Negara Indonesia fell 25 rupiah to 1,375 rupiah on 17 million shares traded, and Bank International Indonesia declined 25 rupiah to 1,800 rupiah with 5.3 million shares traded.

Dealers said that Telkom's losses caused investors to sell other blue-chip banking and tobacco concerns. The selling in Telkom was prompted by news that the government may allow another telecommunications concern provide basic service in the country.

Dealers also said that Telkom was hit by rumors that its 1996 earnings may not meet market expectations.

Cigarette maker Gudang Garam lost 375 rupiah to 10,175 rupiah on 176,500 shares traded. Another cigarette maker, HM Sampoerna fell 25 rupiah to 11,375 rupiah with 322,500 shares traded.

Of the other index-movers, instant noodle maker Indofood Sukses Makmur fell 200 rupiah to 5,400 rupiah with 1.5 million shares traded, and satellite operator Indonesian Satellite dropped 25 rupiah to 6,525 rupiah on 248,500 shares traded.

Diversified Holding Bimantara Citra, however, rose 100 rupiah to 3,225 rupiah on 1.6 million shares traded.