JSX prices jitter following rumor<\/p>\n
JAKARTA (JP): Prices at the Jakarta Stock Exchange (JSX)
\ntumbled briefly yesterday on a rumor about President Soeharto's
\nhealth. In Singapore, where traders caught wind of the rumor, the
\nrupiah's exchange rate fell, while its interest rates rose.<\/p>\n
The JSX index fell to 584 points before it rebounded to close
\nat 588.61, compared with an opening of 594.40.<\/p>\n
In Singapore, the U.S. dollar ended at 2,338 rupiah from an
\nopening quote of 2,326 after holding steady for more than 13
\ndays. A European banker said offshore interest rates for the
\nrupiah rose significantly, AFP reported.<\/p>\n
In Jakarta, price recovery occurred when it became apparent
\nthat it was business as usual for the President, as he attended
\nhis scheduled meetings for the day.<\/p>\n
Minister\/State Secretary Moerdiono, when asked by journalists,
\nreassured that Soeharto was in good health. \"You saw for
\nyourselves that the President is healthy,\" he said.<\/p>\n
Soeharto opened a national meeting of an Islamic studies group
\nand received a Japanese parliamentary delegation, and an American
\npower company, accompanied by U.S. Ambassador Stapleton Roy, at
\nthe presidential palace complex yesterday.<\/p>\n
\"Many investors engaged in panic selling following the rumor.
\nBecause the most liquid stocks are big shares, some of those
\nshares were corrected later in the afternoon,\" a senior analyst
\nfrom a London-based securities company told the Post.<\/p>\n
\"I think it's normal that the market immediately reacts on any
\nrumor about the President,\" the analyst said.<\/p>\n
\"Many foreign investors also contacted us to clarify the
\nrumor, but they canceled on liquidating their portfolios after we
\ntold them that the Minister\/State Secretary has stated that the
\nPresident is in good health,\" he added.<\/p>\n
A dealer with PT Penthasena Arthasentosa, A. Sumirat, said the
\nmarket performed strongly in the morning session and the index
\nmanaged to go higher.<\/p>\n
\"Technically, the market should have gone up today supported
\nby positive news on inflation,\" Sumirat said, referring to the
\n0.07 percent deflation for June announced on Wednesday.<\/p>\n
Sumirat believed foreign investors did most of the selling.
\n\"They are more sensitive to these kinds of rumors. Moreover, most
\nof the weakening stocks today are big shares, which are mostly
\nowned by foreigners,\" Sumirat added.<\/p>\n
The impact of the rumor faded by late afternoon.<\/p>\n
\"We are still trying to confirm the report that Soeharto will
\nfly to Germany for a medical checkup,\" Sumirat added.<\/p>\n
Moerdiono refused to answer when asked to confirm reports of
\nany impending presidential trip abroad. The President had been
\nscheduled to pay a working visit to Kuala Lumpur next week.
\n(alo\/mds)<\/p>",
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