Local stocks continue to surge, rupiah stable<\/p>\n
JAKARTA (JP): Share prices on the local market continued to
\ngain ground on Tuesday as the rupiah stayed at the Rp 9,000 level
\nagainst the U.S. dollar.<\/p>\n
Stock brokers said the firm rupiah coupled with a relatively
\ncalm political situation encouraged foreign investors to make
\nsignificant purchases on certain blue chip stocks.<\/p>\n
The rupiah, which broke several psychological barriers last
\nweek, closed slightly firmer at 9,000 against the American dollar
\non Tuesday compared to Monday's close at 9,050.<\/p>\n
\"Investors feel comfortable enough with the latest
\ndevelopments in the country's economy,\" an institutional broker
\nwith Trimegah Securindolestari said.<\/p>\n
He said that the interest rate cut in the domestic banking
\nsystem by up to eight percentage points to below 60 percent per
\nannum on Monday coupled with the stable political situation had
\nimproved the capital market's sentiment.<\/p>\n
\"The investors shrugged off today's students demonstration. It
\nhas become a common occurrence in this country,\" BNI Sekuritas
\nanalyst Fitri Murniawati said.<\/p>\n
Hundreds of university students staged a rally outside the
\nHouse of Representatives building on Tuesday, demanding President
\nHabibie stamp out corruption, collusion and nepotism and hold a
\nfair general assembly meeting next month.<\/p>\n
The Trimegah broker said that most foreign brokerage firms
\nplaced large buying orders, especially with telecommunications
\nand mining firms, in the afternoon following the government's
\nplan to further divest its stake in PT Indosat, PT Aneka Tambang
\nand PT Tambang Timah this fiscal year.<\/p>\n
\"Investors are delighted with good news like this and this
\nprompts them to enter the market,\" Fitri said.<\/p>\n
The Jakarta Stock Exchange (JSX) Composite Price Index closed
\n2.14 percent firmer or 6.57 points to 313.98 on a total turnover
\nof 197.82 million shares valued at Rp 235.15 billion changing
\nhands.<\/p>\n
Indosat rose Rp 350 to Rp 7,500, on a turnover of 601,500
\nshares, state telecommunications firm PT Telkom rose Rp 175 to Rp
\n2,000, with 16.05 million shares changing hands, mining firm PT
\nTambang Timah rose Rp 500 to Rp 5,200 on 1.41 million shares, and
\ngold producer PT Aneka Tambang climbed Rp 100 to Rp 1,425, with
\n23.23 million shares changing hands.<\/p>\n
But BNI's Fitri said that investor confidence in the country
\nhad not returned completely as the country's long-term economic
\nprospects remained bleak.<\/p>\n
\"If there are foreign investors buying, it will be for the
\nshort term as they will shun our market if conditions turn sour,\"
\nshe contended.<\/p>\n
Like the stocks, the beleaguered rupiah remained relatively
\nstable against the American dollar.<\/p>\n
After opening at 9,050, the rupiah closed at 9,000 in the
\nJakarta spot market on the back of state-bank dollar selling for
\nthe currency.<\/p>\n
\"Investors are still scared to enter the market and they
\nprefer to take a wait-and-see attitude,' a chief dealer with a
\njoint venture bank said.<\/p>\n
Dealers said that the crippled rupiah, which hit an intraday
\nhigh of 8,900, was expected to trade between 8,800 and 9,000 in
\nthe coming days. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-stocks-continue-to-surge-rupiah-stable-1447893297",
"image": ""
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