Fischer visit to influence JSX this week: Analysts<\/p>\n
JAKARTA (JP): The outcome of the meeting between the
\nInternational Monetary Fund (IMF) executive, Stanley Fischer,
\nwith President Abdurrahman Wahid on Monday will determine the
\ndirection for share trading of the Jakarta Stock Exchange (JSX)
\nthis week, equity analysts said.<\/p>\n
\"We are anxious to hear how the meeting will turn out. If it
\nis good, it will be positive for the market,\" said Lukman Hakim,
\nthe associate director at Ludlow Securities.<\/p>\n
Stanley Fischer, the fund's acting managing director, arrived
\non Sunday to meet with Abdurrahman and senior economic officials
\nto review the country's economic programs.<\/p>\n
\"The main reason for my visit is to reassure President Wahid
\nof the IMF's support for Indonesia's economic program, and to
\nreview its progress with him,\" Fischer said in an arrival
\nstatement.<\/p>\n
Lukman said the JSX needed to see the Indonesian government
\nstand up to its commitments as set out in the IMF's letter of
\nintent, while continuing to implement the necessary economic
\nreform programs.<\/p>\n
There was some negative sentiment in the market as investors
\nwere still worried about the government's ability to meet its
\nreform measures as agreed on in the government's letter of intent
\nto the IMF on Jan. 20, Lukman said.<\/p>\n
Fischer, however, said the IMF had a more positive view and
\nthat they were encouraged by recent positive developments in the
\nimplementation of the program, including the framework for
\ncorporate debt restructuring and the favorable Paris Club
\nmeeting.<\/p>\n
Lukman said the other factor weighing on JSX trading this week
\nwould be investors' speculation on possible U.S. interest rate
\nhikes as the U.S. government would likely preempt the possible
\nincrease in the inflation rate on the country's strengthening of
\nconsumers' buying power.<\/p>\n
The continuing decline of the unemployment rate in the United
\nStates will soon cause workers' wages to go up, thereby creating
\nupward pressure on inflation in the economic powerhouse, said
\nanother analyst.<\/p>\n
\"If the United States raised its interest rates, we would have
\nto do the same to protect the rupiah's value to the greenback,
\nbut, of course, at the risk of hurting the stock market,\" Lukman
\nsaid.<\/p>\n
If rupiah interest rates were not raised, the local currency's
\nvalue against the dollar would be pressured otherwise, and in
\nturn would certainly weigh on the JSX to a great extent, Lukman
\nsaid.<\/p>\n
Currency dealers said the rupiah might breach its important
\npsychological 8,000 level against the U.S. dollar this week amid
\nthe lack of funds flowing into the country.<\/p>\n
\"Last week the rupiah weakened against the greenback as local
\ncompanies demanded more dollars to pay their maturing offshore
\ndebts this year,\" said one dealer.<\/p>\n
The rupiah dropped last week to Rp 7,965 compared to Rp 7,625
\nthe previous week.<\/p>\n
The JSX index dropped 5.5 percent last week to close at 526.39
\npoints, down from 556.78 the previous week. But the daily average
\ntransaction value increased to Rp 458.86 billion last week,
\ncompared to Rp 374.28 billion during the previous week.<\/p>\n
The daily average turnover also increased to 533.7 million
\nshares from 307.4 million shares the previous week.<\/p>\n
Last week's top gainers were PT Cipendawa Farm Enterprises,
\nwhose shares were up by 19.23 percent, PT Sekar Laut by 17.65
\npercent and PT Indocement Tunggal Perkasa by 17.24 percent.<\/p>\n
The week's big losers were PT JAPFA, whose shares fell by 45
\npercent, PT Putra Surya Perkasa by 33.33 percent and PT Sierad
\nProduce by 28.57 percent.<\/p>\n
JSX last week delisted PT Putra Surya Multidana and PT
\nFiskaragung Perkasa due to their bankruptcy status as declared by
\nthe court.<\/p>\n
Top brokerage firms by transaction value were PT Vickers
\nBallas Tamara with Rp 287.97 billion in transactions, PT
\nCiptadana Sekuritas with Rp 210.48 billion and PT Danareksa
\nSekuritas with Rp 149.56 billion. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fischer-visit-to-influence-jsx-this-week-analysts-1447893297",
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