Rupiah down on corporate dollar demand, shares up<\/p>\n
Dow Jones, Jakarta<\/p>\n
The rupiah ended lower on Tuesday as local companies continued
\nto buy dollars on a view that the U.S. unit will remain strong in
\nthe near future amid expectations of aggressive U.S. interest
\nrate hikes.<\/p>\n
The local unit ended at Rp 9,410 per dollar, down from its
\nclose Monday at Rp 9,400.<\/p>\n
Local companies are the main dollar buyers recently as they
\nneed the U.S. unit to hedge offshore obligations on worries over
\npolitical fighting ahead of next month's presidential elections.<\/p>\n
On the other hand, exporters are still reluctant to sell their
\ndollars, expecting the U.S. unit to rise further, dealers said.<\/p>\n
\"Exporters are waiting to sell their dollars around Rp 9,500,\"
\nsaid a dealer at a foreign bank.<\/p>\n
Bank Indonesia is believed to have sold the dollar in small
\namounts via state banks to curb the rupiah's slide. The central
\nbank's alleged intervention lifted the local unit up from its
\nintraday low of Rp 9,425.<\/p>\n
Dealers expect local companies to continue buying the dollar
\nlater this week amid expectations of the dollar's global
\nstrength.<\/p>\n
They expect the rupiah to trade between Rp 9,400 and Rp 9,450
\nWednesday.<\/p>\n
Meanwhile, shares ended higher as bargain hunters bought blue
\nchips that fell in the previous three sessions, dealers said.<\/p>\n
\"The market recovered from the recent sluggish performance,\"
\nsaid a trader with a local securities firm. She added that
\nbuying, however, wasn't that heavy, capped by lingering concerns
\nabout the continued weakness of the rupiah.<\/p>\n
The Jakarta Stock Exchange's main index ended up 11.073
\npoints, or 1.6 percent, at 707.411, up from an intraday low of
\n692.870.<\/p>\n
Gainers led decliners 62 to 27, with 71 stocks unchanged.
\nVolume was 892 million shares valued at Rp 570 billion.<\/p>\n
Telecommunications blue chips led the gainers.<\/p>\n
Bellwether Telekomunikasi Indonesia ended up Rp 200, or 3
\npercent, at Rp 6,800 on a rebound. The stock fell 11 percent in
\nthe previous ten sessions.<\/p>\n
Indonesian Satellite Corp. rose Rp 125, or 3.3 percent, to Rp
\n3,925 on bargain hunting.<\/p>\n
Also higher on a rebound were shares in Bank Danamon, which
\ngained Rp 100, or 3.9 percent, at Rp 2,675, and Bank Mandiri,
\nwhich ended up Rp 25, or 2 percent, at Rp 1,150.<\/p>\n
Shares in oil and gas producer Medco Energi ended up Rp 50, or
\n3.9 percent, at Rp 1,350 on expectations that it will complete
\nits planned takeover of Australia's Novus Petroleum Ltd. later
\nthis month.<\/p>\n
Dealers said they expect the market Wednesday to trade higher
\non further bargain hunting.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-down-on-corporate-dollar-demand-shares-up-1447893297",
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"sponsor": "Okusi Associates",
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