RI ADRs rebound on rupiah's rise<\/p>\n
NEW YORK (Reuters): American Depositary Receipts (ADRs) fell
\noverall Friday on fears about Asian financial stability.<\/p>\n
Indonesian ADRs rebounded, buoyed by a rising currency despite
\na political and monetary crisis gripping the Southeast Asian
\nnation.<\/p>\n
\"Obviously there is weakness across the board in all markets,
\nbasically off weakness in Asia,\" a trader said. \"That has carried
\nover into ADRs.\"<\/p>\n
The ADRs also mirrored the drop in New York markets, with the
\nblue-chip Dow Jones industrial average off 67 points at 7736 in
\nmid-morning. The Dow shrugged off stronger-than-expected U.S.
\nemployment figures, which suggest the economy is still strong.<\/p>\n
Indonesian ADRs rose off sharp losses Thursday helped by a
\nrally in the country's currency, the rupiah, against the dollar.<\/p>\n
U.S. President Bill Clinton told President Soeharto in a
\ntelephone call that Indonesia had to follow through on economic
\nreforms.<\/p>\n
Telephone company PT Telekom rose 15\/16, or 15.38 percent, to
\n6-5\/8 in heavy volume. Telekom was the percentage-gain leader on
\nthe New York Stock Exchange and among its volume leaders.<\/p>\n
International telecommunications provider Indonesian Satellite
\nCorp was up 3\/8, or 2.81 percent, to 11-1\/2 on heavy volume.<\/p>\n
Chinese ADRs also eased after the Hang Seng Index fell almost
\nfour percent to its lowest close since May 1995 and major banks
\njacked up their prime lending rates.<\/p>\n
Huaneng Power International Inc dropped 1-9\/16 to 18-1\/4 and
\nwas among percentage-loss leaders on the New York Stock Exchange.
\nChina Eastern Airlines Corp Ltd fell 9\/16 to 11-7\/8.<\/p>\n
Latin American ADRs fell, dragged down by the Asian worries
\nand a decision by Chile, which has major trade with East Asia, to
\nraise interest rates to protect the peso.<\/p>\n
Chemical company Soquimich fell 3-13\/16 to 36-7\/16, a 12-month
\nlow, and was among percentage-loss leaders on the New York Stock
\nExchange.<\/p>\n
Telecommunications company CTC dropped 1-1\/16 to 23-13\/16.
\nAmong European ADRs, drugs company Glaxo Wellcome Plc.<\/p>\n
Emerging market debt prices ended a volatile week mostly lower
\nas sellers took their cue from a 222-point plunge in the Dow
\nJones industrial average.<\/p>\n
\"There is no liquidity in this market now,\" said one trader.
\n\"What is driving the market is the barometer of risk, which is
\nbasically the U.S. stock market.\"<\/p>\n
Emerging debt prices have been tracking the Dow over the past
\nfew months since the Asian crisis deepened in October. The Dow
\nJones industrial average closed down 2.85 percent, or 222 points
\nto 7580.<\/p>\n
Meanwhile, the U.S. Treasury 30-year benchmark bond rose 18\/32
\nto yield 5.71 percent, dampening the price action of Brady bonds.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-adrs-rebound-on-rupiahs-rise-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}