Local share prices surge despite political concerns<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nclosed higher on Wednesday, despite market fears of possible
\npolitical instability on the first day of the country's
\ncampaigning period.<\/p>\n
The Jakarta Composite Index rose 2.72 percent or 15.7 points
\nto close at 593.60.<\/p>\n
Dealers said the government had a vested interest in making
\nthe JSX index look positive on the first day of the campaigning
\nperiod.<\/p>\n
\"The government seems to intervene in the stock market at
\nevery political event, creating an artificial economic impact.\" a
\nlocal dealer said.<\/p>\n
He said a politically-triggered bearish equity market would
\nmake the government \"look ugly\" and should not be allowed to
\nhappen.<\/p>\n
However, an institutional sales broker at Trimegah
\nSecurindolestari, Vonny Juwono, said the day's index surge was
\nthe result of market reaction to the peaceful campaign.<\/p>\n
\"Investors promptly built up their confidence after realizing
\nthat the first day of the election campaign had gone smoothly
\nwithout any unrest,\" she said.<\/p>\n
The 48 political parties contesting the country's June 7
\nelection started their campaigning on Wednesday. The campaign
\nperiod is scheduled to end on June 5.<\/p>\n
\"The market was negative at the day's open, but from about 10
\no'clock in the morning it turned around and continued to be
\npositive until closing,\" Vonny said.<\/p>\n
Blue chip stocks pushed the market, as once their prices were
\ndown, investors were quick to make purchases, according to Vonny.<\/p>\n
\"For the last couple of days prices of blue chips have been
\ncorrected. They have been relatively slow to rise during the
\ngenerally bullish market. Now, investors are back for these blue
\nchips.\"<\/p>\n
Vonny agreed that to some extent the decrease of the central
\nbank's benchmark rate had a role in the market rally.<\/p>\n
On Wednesday, Bank Indonesia auctioned Rp 15.32 trillion
\n(US$1.9 billion) of one-month promissory notes, at a weighted
\ninterest rate of 28.88 percent, down from 29.99 percent last
\nweek.<\/p>\n
Banking stocks were traded moderately with prices remaining
\nstable, Vonny added.<\/p>\n
Bank Danamon stayed unchanged at Rp 400 on some 23 million
\nshares traded, Bank Niaga was down by Rp 50 to Rp 500 on some 27
\nmillion shares traded.<\/p>\n
Bank Internasional Indonesia was down by Rp 25 to close at Rp
\n250 on heavy trading of some 274 million shares. Bank Bali
\ndeclined Rp 25 to Rp 1,050 on about a half million shares traded.<\/p>\n
State-owned Telkom jumped Rp 175 to close at Rp 4,300 on some
\n13 million shares traded. International call operator Indosat
\nrose Rp 400 to Rp 16,400 on light trading, after the government
\nannounced a plan to release 5 percent of its shareholding in the
\ncompany at a price above Rp 16,000 per share.<\/p>\n
Meanwhile, the Associated Press reported that Asian stock
\nmarkets closed mostly lower Wednesday, dragged down by jitters
\nover a possible rise in U.S. interest rates.<\/p>\n
The U.S. Federal Open Market Committee met Tuesday and decided
\nto leave interest rates unchanged, but said it was inclined to
\nadopt a tighter monetary policy to curb inflationary pressure.<\/p>\n
In Tokyo, the largest market in Asia, concerns over the rate
\nrise pulled the key index down 1.5 percent, setting a trend for
\nmost markets in the region.<\/p>\n
The benchmark 225-issue Nikkei Stock Average shed 250.44
\npoints, closing at 16,128.18. The average now has fallen a total
\nof 819.18 points in five days, including Tuesday's 42.40-point
\ndrop, or 0.26 percent.<\/p>\n
In Hong Kong, The blue-chip Hang Seng Index fell 223.96 points
\nto close at 12,403.14, its lowest close since April 15. On
\nTuesday, the index gained 38.50 points.<\/p>\n
In Bangkok, Thai share prices closed slightly higher. The
\nStock Exchange of Thailand, or SET, Index edged up 1.95 points,
\nor 0.4 percent, to 483.50.<\/p>\n
In Manila, Philippine stocks ended sharply lower as investors
\ncashed in on recent gains. The 30-company Philippine Stock
\nExchange Index closed 77.48 points, or 3.1 percent, lower at
\n2,390.82.<\/p>\n
In Seoul, share prices closed higher for the second
\nconsecutive day. The Korea Composite Stock Price Index rose 5.69
\npoints, or 0.7 percent, to 734.98.<\/p>\n
In Taipei, share prices ended slightly higher. The key
\nWeighted Price Index closed up 29.09 points, or 0.4 percent, at
\n7,614.60.<\/p>\n
In Sydney, Australian share prices ended lower, the All
\nOrdinaries Index closing at 2,981.2, down 18.4 points, or 0.6
\npercent.<\/p>\n
In Wellington, New Zealand share prices closed lower, the
\nbenchmark NZSE-40 Capital Index falling 19.91 points, or 0.9
\npercent, at 2,170.69. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-share-prices-surge-despite-political-concerns-1447893297",
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