JSX stocks strengthen but concerns remain<\/p>\n
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
\ngained slightly yesterday but concerns over the country's
\npolitical and economic uncertainty remained, analysts and dealers
\nsaid.<\/p>\n
The rupiah, which opened at 11,400\/11,500, managed to close at
\n11,200 against the U.S. dollar. But it is still lower than the
\nprevious day's close of 10,400.<\/p>\n
Money market dealers said the rupiah weakened to as low as
\n11,800 against the U.S. dollar in the morning spooked by another
\nserious blow to the country's already highly fragile banking
\nsystem before recovering to 11,200 in the spot market.<\/p>\n
Media reports that Bank Central Asia (BCA) -- 70 percent owned
\nby Salim Group and the remaining 30 percent by Soeharto's
\nchildren -- had been put under the supervision of the Indonesian
\nBanking Restructuring Agency (IBRA) continued to weigh down the
\ncurrency market.<\/p>\n
\"The inclusion of the BCA under IBRA shows that Indonesia's
\nbanking system is still delicate,\" a dealer with a local private
\nbank said.<\/p>\n
A run on the Salim Group-owned bank by worried depositors over
\npast weeks has brought its liquidity below acceptable levels.<\/p>\n
But dealers expected that the US$43 billion bailout package,
\nbrokered by the International Monetary Fund (IMF) to bring the
\ncountry out of the economic crisis, would boost the rupiah's
\nvalue and enable it to break the psychological level of 10,000
\nagainst the greenback in the days ahead.<\/p>\n
\"The fate of the rupiah depends largely on the IMF loan
\npackage now,\" the dealer said.<\/p>\n
The IMF director for Asia-Pacific, Hubert Neiss, will leave
\nJakarta today (Saturday) after a whirlwind fact-finding mission
\ndesigned to assess when the IMF can turn on the financial
\nassistance taps again.<\/p>\n
\"Investors will remain sidelined until IMF releases its funds
\nfor the country,\" the dealer said.<\/p>\n
As the rupiah strengthened, the stock prices on the JSX gained
\nfooting with the main price index rising 1.5 percent or 6.24
\npoints to 420.24 yesterday.<\/p>\n
Total turnover was 313.35 million shares changing hands on the
\nregular market with a total value of Rp 355.48 billion (US$32.31
\nmillion).<\/p>\n
Brokers attributed the increase in the main price index to the
\narbitrage trading by foreign fund managers on cross-listed stocks
\nlike PT Telekomunikasi Indonesia (Telkom), satellite operator PT
\nIndosat and tin mining firm PT Tambang Timah.<\/p>\n
The stock prices of Telkom rose Rp 150 to Rp 3,750 on a total
\n6.48 million shares, Indosat rose Rp 450 to Rp 14,950 on 784,000
\nmillion shares and Tambang Timah closed unchanged at Rp 7,000 on
\n153,000 shares.<\/p>\n
\"This is understandable as the three stocks account for 35
\npercent of market capitalization in the local bourse,\" the broker
\nsaid, adding that any slight movement in the stocks would
\ndetermined the main price index.<\/p>\n
A stock broker with Trimegah Securindolestari said that
\nforeign investors continued to discard the stocks related to
\nSoeharto's family and his allies like cementmaker PT Indocement
\nTunggal Perkasa and noodlemaker PT Indofood Sukses Makmur.<\/p>\n
The broker said that most foreign brokerage houses, which were
\nseen to make large selling orders on the stock, were SBC Warburg
\nSecurities, Credit Lyonnnais Securities, Merril Lynch Securities,
\nIndosuez WICarr Securities and Jardine Fleming Securities.<\/p>\n
\"Investors do not want to hold the stocks for fear that they
\nwill not have value again,\" the broker said.<\/p>\n
The stock price of Indofood fell Rp 100 to Rp 1,575 on a total
\nturnover of 15.81 million shares and cement maker Indocement
\nTunggal Perkasa shed Rp 200 to Rp 2,700 on 71,500 shares.<\/p>\n
Head of research of Pentasena Securities Mohammad Syharial
\nsaid that despite the increase in the main price index, foreign
\ninvestors would continue to stay away from the country's battered
\neconomy until President Habibie endorsed concrete economic and
\npolitical measures to bring the country out of its predicament.<\/p>\n
\"Foreign investors will continue to stay away from the
\ncountry's dire market until they see concrete measures introduced
\nby the government,\" he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-stocks-strengthen-but-concerns-remain-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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