RI market steady on positive sentiment<\/p>\n
JAKARTA (JP): The Indonesian financial market closed the week
\nhigher yesterday on positive sentiment over the economic outlook
\nwith international donors pledging more aid for the country.<\/p>\n
The rupiah maintained its strength, closing at 13,350 against
\nthe U.S. dollar on the Jakarta spot market, while share prices on
\nthe Jakarta Stock Exchange (JSX) gained 2.6 percent, dealers and
\nstockbrokers said.<\/p>\n
Analysts said the euphoria over the International Monetary
\nFund's pledge of a further US$6 billion in aid in addition to the
\nimminent release of $1 billion to the country had buoyed the
\nmarkets yesterday.<\/p>\n
\"The market has received the new IMF package gleefully,\"
\nBahana Securities associate director and head of equity sales
\nAndre Cita said.<\/p>\n
\"I'm very pleased with what has happened in the market,
\nespecially the series of good bits of news which have come in.
\nThat's encouraging,\" he added.<\/p>\n
After strengthening 7 percent on Thursday, the rupiah remained
\nsteady against the U.S. dollar yesterday in a thin market as
\noperators took a break ahead of the weekend.<\/p>\n
The announcement of new loans from the IMF and the World Bank,
\nand the rescheduling of Indonesian sovereign debt at one stage
\nlifted the rupiah to Rp 12,800 on Thursday, but profit taking
\nlater sent it back above Rp 13,000.<\/p>\n
Yesterday the rupiah was trading at 13,100 in the morning, but
\ninched down in the afternoon to close at 13,300\/400, dealers
\nsaid.<\/p>\n
They said state banks were continuing to stand behind the
\nrupiah by selling their dollar holdings.<\/p>\n
The strong rupiah and positive sentiment boosted share trading
\non the local bourse, stockbrokers said.<\/p>\n
The JSX Composite Index closed 12.462 points higher at
\n486.234. Trading turnover totaled 570.46 million shares valued at
\nRp 551.49 billion (US$41.3 million).<\/p>\n
Stockbrokers said domestic investors dominated trading as they
\nscrambled to gain from the good news coming into Indonesia. They
\nsaid that foreign investors had continued to remain on the
\nsidelines, despite the positive sentiment.<\/p>\n
Cita agreed and said foreign investors were waiting for the
\ngovernment to move to revive the economy and ensure social
\nstability.<\/p>\n
\"We did not see as much foreign buying as we would like to. A
\nlot of foreign investors I spoke to are waiting to see if the
\neconomy is not just going to stabilize but actually begin to move
\nforwards again.\"<\/p>\n
\"They also want to make certain that the social situation will
\nremain stable.\"<\/p>\n
Socgen-Crosby Indonesia's head of research Goei Siauw Hong
\nnoted that domestic investors were still hunting out state-owned
\nstocks and stocks plagued by rumors.<\/p>\n
\"Our market is more rumor-driven now. Investors do not look
\ninto the fundamentals of the companies they invest in,\" Hong
\nsaid.<\/p>\n
He said domestic investors had continued to focus their buying
\non companies that were part of the government's privatization
\nprogram, with state mining company PT Aneka Tambang gaining Rp 75
\nto close at Rp 2,475 on 17.4 million shares traded.<\/p>\n
However, profit-taking hit food giant PT Indofood Sukses
\nMakmur, which had earlier made huge gains on rumors that a
\nforeign investor would acquire a stake in the company.<\/p>\n
Indofood shed Rp 150 to close at Rp 2,175 on 62 million shares
\ntraded, topping the list of the most actively traded stocks.<\/p>\n
Banking stocks also extended their gains as local investors
\nscrambled to buy shares in banks considered to be healthy.<\/p>\n
Bank Negara Indonesia gained Rp 50 to close at Rp 425 on 14.1
\nmillion shares traded, Lippo Bank gained Rp 75 to close at Rp 950
\non 35 million shares, and Bank Internasional Indonesia rose Rp 25
\nto close at Rp 400.<\/p>\n
Heavyweight state telephone monopoly PT Telkom climbed Rp 125
\nto close at Rp 4,625, while state satellite operator PT Indosat
\nsurged Rp 1,700 to finish the day on Rp 16,200. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-market-steady-on-positive-sentiment-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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