Local financial market gains ground as stocks rise 1.1%<\/p>\n
JAKARTA (JP): The country's financial market gained footing on
\nFriday with the rupiah moving to 9,025 against the U.S. dollar as
\nstock prices rose by 1.1 percent.<\/p>\n
Currency dealers said signs of improvement on the country's
\npolitical and economic fronts have offered more leeway for the
\nrupiah to gain ground against the American dollar.<\/p>\n
Dealers said that the rupiah, which opened lower at
\n9,200\/9,300, managed to break through the 9,000 level to hit an
\nintraday high at 8,800 as offshore operators continued to unload
\ntheir holdings after learning that the country's House of
\nRepresentatives had passed the much-debated new political bills
\ninto laws.<\/p>\n
\"Some attributed the rupiah's strong gain to positive news on
\npolitical conditions, but I think it was because certain offshore
\nplayers were afraid of the imposition of a capital control
\nsystem,\" a chief dealer with a joint venture bank said.<\/p>\n
The dealer added that rumors circulating in the market on
\nFriday said Indonesia was considering to opt for an adjusted
\nMalaysian-style capital control system.<\/p>\n
Those rumors forced many offshore operators, who had
\nspeculated on the rupiah in the past few weeks, to frantically
\nsell their dollars, the dealer said. Nevertheless, he added, most
\nlocal operators did not believe the rumors.<\/p>\n
Currency dealers said that dollar selling by certain state
\nbanks also helped the rupiah to strengthen against the American
\ndollar though its fate in the medium and long term remains dark.<\/p>\n
\"Several state banks sold their dollars at the 8,900 level,\"
\nthe dealer said pointing out that such dollar-unloading brought
\nthe rupiah to an intraday high of 8,800.<\/p>\n
However, the rupiah was slightly weaker at 9,050 against the
\nAmerican dollar at the end of trading, though firmer compared to
\nits close at 9,225 the previous day.<\/p>\n
Dealers and financial analysts said that sentiment on the
\nrupiah remained bearish in the medium and long term with trading
\nrange expected to be between 9,000 and 9,500 against the dollar.<\/p>\n
Taking the lead of the rupiah, share prices in the local stock
\nmarket also rose 1.1 percent on Friday with the Jakarta Stock
\nExchange (JSX) Composite Index ascending 4.66 points to close at
\n411.93.<\/p>\n
Trading volume reached 288.19 million shares changing hands,
\nvalued at Rp 271.69 billion.<\/p>\n
Gainers led loses 48 to 38 with 83 stocks remaining unchanged.<\/p>\n
Despite the rise in the main price index, the biggest-cap
\nstock, state-owned local telecommunications giant PT Telkom,
\ninching down Rp 25 to close at Rp 3,300 on 10.6 million shares
\ntraded.<\/p>\n
State-owned international call operator PT Indosat, meanwhile,
\ngained Rp 775 to reach Rp 11,150 with 2.9 million shares traded.<\/p>\n
Ciggarette maker PT Gudang Garam was unchanged at Rp 10,800 on
\nthree million shares, while competitor PT HM Sampoerna rose Rp
\n300 to Rp 5,700 on 15.5 million shares.<\/p>\n
Stockbrokers said local share prices were boosted by bullish
\nsentiment in the regional equity markets.<\/p>\n
\"There were some buying programs by investors to benefit from
\nthe rise in regional markets,\" Vonny Juwono, an institutional
\nsales broker with Trimegah Securindolestari, said.<\/p>\n
Stock analysts said that the dire political and economic
\nsituation at home has forced most investors into speculative
\ntrading rather than pure investment tactics.<\/p>\n
The head of research at Panin Sekuritas, Anton Karlam, said
\nthat economic and political reform plans have not sufficiently
\nassured foreign investors to be comfortable in the local stock
\nmarket.<\/p>\n
\"Investors do not find any meaningful guide to invest here,\"
\nhe said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-financial-market-gains-ground-as-stocks-rise-11-1447893297",
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