Domestic market down on political concerns<\/p>\n
JAKARTA (JP): The domestic financial market slipped further
\nyesterday due to political maneuvering, with the rupiah holding
\nat 15,250 against the U.S. dollar and stock prices inching lower
\nby 1.4 percent, dealers and analysts said.<\/p>\n
They added that regional bearishness, sparked by the weakening
\nof the Japanese yen to 141 against the U.S. dollar, had also
\ncontributed to the local market's downturn.<\/p>\n
Most investors squared their positions before the weekend and
\ntook profits ahead of Golkar's election of its new chairman.<\/p>\n
\"The market is still listless, except for some dollar buying
\nby state banks,\" a dealer with a local private bank said, noting
\nthat state banks continued to purchase dollars to finance imports
\nby state agencies.<\/p>\n
\"All eyes and ears are now directed toward Hotel Indonesia
\nwhere Golkar's congress is being held. Most operators are just
\ntaking a wait-and-see stance until the new chairman is elected.\"<\/p>\n
A local member of the House of Representatives said after
\nmeeting President B.J. Habibie yesterday that the IMF was waiting
\nto see whether Golkar's election would threaten the current
\nperiod of relative stability before the Fund disbursed its next
\nUS$1 billion tranche of the $43 billion bailout package it had
\narranged for Indonesia.<\/p>\n
The dealer noted that the market was somewhat relieved to see
\nthe latest developments in Golkar, in which Minister\/State
\nSecretary Akbar Tandjung gained more support than his rival Edi
\nSudradjat, former defense and security affairs minister.<\/p>\n
Some analysts said Akbar was backed by Habibie, while Edi was
\npicked by supporters of former long-time president Soeharto.<\/p>\n
Dealers said the rupiah hit a day low of 15,450 in the morning
\nover reports that Edi had procured more support. But when it
\nseemed that Akbar would be the winner in the afternoon, the
\nrupiah regained some of its lost ground and closed the day at
\n15,200\/350.<\/p>\n
The rupiah closed Thursday at 15,200.<\/p>\n
Share prices on the Jakarta Stock Exchange (JSX) also
\ncontinued to decline, with the JSX Composite Index closing down
\n6.740 points at 463.581.<\/p>\n
Trading turnover totaled 151.99 million shares valued at Rp
\n221.67 billion ($14.6 million).<\/p>\n
Bahana Securities associate director and head of equity sales
\nAndre Cita said most investors cashed in profits ahead of the
\nweekend.<\/p>\n
\"A lot of companies have actually attracted foreign investors.
\nBut right now, most investors are trying to keep their profits,\"
\nCita said.<\/p>\n
He said the companies which had attracted massive buying
\nincluded state-owned cement maker PT Semen Gresik, gold and
\nnickel miner PT Aneka Tambang and other companies with dollar
\nearnings.<\/p>\n
\"Besides, everyone is a kind of distracted by the IMF, waiting
\nfor the results of Ginandjar's trip to Washington, and at the
\nsame time looking at Golkar's political developments,\" Cita said.<\/p>\n
\"If you combine those factors with the uncertainty of the
\nJapanese yen, you will see that they make the market pretty
\nlackluster.\"<\/p>\n
The head of research at Vickers Ballas Tamara, Noraya
\nSoewarno, agreed, saying the correction was just normal after the
\nmarket experienced a rally.<\/p>\n
The correction, however, was not so severe, thanks to rumors
\nthat the government and a foreign investor would soon announce a
\ndeal on Aneka Tambang, prompting investors to purchase the
\ncompany's stocks.<\/p>\n
\"I think Aneka Tambang is the star of the week, just like
\nSemen Gresik was last week,\" Noraya said.<\/p>\n
Aneka Tambang continued to dominate trade yesterday, closing
\nup Rp 50 to Rp 2,050 with 15.5 million shares changing hands.<\/p>\n
Semen Gresik, however, lost Rp 650 to close at Rp 11,300 as
\nmost investors took profits. Semen Gresik soared 35 percent when
\nit resumed trading Tuesday, after the government announced that
\nit selected Mexico's Cemex SA as its preferred bidder.<\/p>\n
Cemex offered $1.38 per share for a 35 percent government
\nstake and a 16 percent public stake at the Indonesian cement
\nproducer.<\/p>\n
Heavyweight state-owned domestic telephone monopoly PT Telkom
\nclosed unchanged at Rp 4,350 with 8.6 million shares traded as
\ndid international telephone operator PT Indosat which ended the
\nsession at Rp 17,800 from 99,000 shares changing hands.<\/p>\n
Cigarette giant PT Gudang Garam dipped Rp 650 to Rp 8,450,
\nwhile competitor PT HM Sampoerna gained Rp 25 to Rp 2,275. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/domestic-market-down-on-political-concerns-1447893297",
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