Quiet trading likely on local mart<\/p>\n
JAKARTA (JP): The local stock exchange will see quiet trading
\nthis week as most potential investors had already left the market
\nfor their year-end holiday, analysts said.<\/p>\n
The analysts said that window dressing activities, which
\nusually take place during the year-end, would likely be less
\nactive than previous years.<\/p>\n
\"Window dressing operations will only be active if the
\ncountry's economic and political situation is still normal,\" one
\nanalyst at a local securities firm said on Saturday.<\/p>\n
\"The gloomy outlook of the country's political and economic
\nconditions has discouraged all sorts of trading activities,
\nincluding the window dressing,\" he said.<\/p>\n
Analysts earlier estimated that many fund managers would carry
\nout year-end window dressing operations as part of their strategy
\nto improve the performance of their overall equity portfolio.<\/p>\n
Head of research at BNI Securities Adrian Rusmana said that
\nIndonesia's unresolved political and economic crises had posed a
\nhuge obstacle to most investors putting funds in the battered
\nlocal bourse.<\/p>\n
Moreover, he said, foreign investors had not seen any clear-
\ncut measures by President Habibie's transitional administration
\nto properly address the problems.<\/p>\n
\"Investors are only mesmerized if there is political and
\nsecurity stability,\" he said.<\/p>\n
The country has been rocked over the past few months by
\npersistent daily antigovernment protests in the capital demanding
\nthe current government introduce measures to alleviate its worst
\ncrisis in decades and prosecute former president Soeharto for his
\nalleged abuse of political and economic power during his 32 years
\nin power.<\/p>\n
An analyst with Mashill Jaya Securities, Edhi Widjojo, said
\nthat most offshore fund managers would only re-enter the local
\nmarket if they saw a serious commitment by the government to end
\nthe crises.<\/p>\n
Foreign fund managers have mostly fled the country since
\nbloody riots hit the country in May, killing hundreds of people
\nand forcing former president Soeharto to step down.<\/p>\n
The daily trading volume in the local bourse has significantly
\ndeclined to 180 million shares from 380 million shares before the
\neconomic crisis hit the country in July of last year.<\/p>\n
\"The absence of foreign investors should be blamed for the
\nlethargic trading,\" Vonny Juwono, a sale broker with Trimegah
\nSecurindolestari, said on Friday.<\/p>\n
She said that the benchmark price index was expected to fall
\nbelow the 400-point key level this week as there were no more
\nincentives left for investors to make new purchases.<\/p>\n
\"At least the index will hit its support level of 390 points
\nthis week,\" she predicted.<\/p>\n
The Jakarta Stock Exchange (JSX) fell to 403.96 last week from
\n405.59 the previous week.<\/p>\n
Daily average turnover also dropped by 4.1 percent to just
\n235 million shares changing hands against 245.20 million shares
\nthe previous week.<\/p>\n
Daily average transaction value, however, rose 21 percent to
\nRp 269.74 billion last week compared to Rp 222.43 billion the
\nprevious week.<\/p>\n
Financial analysts said that trading activities on the
\ncurrency market would remain quiet this week due to the absence
\nof fresh leads, since most market participants are on their year-
\nend holiday.<\/p>\n
They said that the rupiah, which closed 3 percent lower at
\n7,750 last week compared to its close of 7,500 the previous week,
\nshould range between 7,400 and 8,000 this week.<\/p>\n
\"Even if there are still trading activities, the volume will
\nbe very limited,\" a chief dealer with a local private bank said.<\/p>\n
Financial analysts said, though, that the rupiah's fate had
\nshrugged off the negative impact of persistent antigovernment
\nprotests in the past few days, but unresolved political and
\nsocial concerns still hinder its mid-term and long-term
\nprospects. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/quiet-trading-likely-on-local-mart-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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