Rupiah ends down on corporate dollar demand<\/p>\n
Dow Jones
\nJakarta<\/p>\n
The Indonesian rupiah ended slightly lower on Wednesday on
\ncorporate dollar demand powered by high global oil prices,
\ndealers said.<\/p>\n
The dollar closed at Rp 9,781, a notch up from the on Tuesday
\nclose of Rp 9,780. The U.S. unit hit a high of Rp 9,785 in
\nintraday trading.<\/p>\n
\"Today was the same old story of domestic corporate (dollar)
\ndemand linked to high oil prices,\" a dealer at a foreign bank
\nsaid.<\/p>\n
Dealers said that the possibility of global oil prices
\nincreasing further may test a central bank \"psychological
\nbarrier\" of Rp 9,800 on Thursday.<\/p>\n
Global oil prices have hovered around US$60 per barrel in
\nrecent weeks and the benchmark August crude oil price rose 24
\ncents on Wednesday to $60.86 per barrel.<\/p>\n
Investors were also closely watching the potential impact on
\ncurrency markets of the 12:30 GMT release of U.S. trade deficit
\ndata.<\/p>\n
Market activity may slow slightly on Thursday due to the
\nimplementation of new foreign exchange rules unveiled last month.
\nThe regulations place new restrictions on the currency market
\nactivity of offshore investors.<\/p>\n
The rules aim to deter speculation and limit weakness in the
\nrupiah. The currency hit a more-than-three-year low against the
\ndollar last week, but then rebounded on a government currency
\nsupport plan.<\/p>\n
Investors already have been squaring their positions in the
\nweeks since the central bank announced the new rules.<\/p>\n
The dollar will likely trade between Rp 9,775 and Rp 9,825 on
\nThursday, dealers said.<\/p>\n
Indonesian shares ended higher on Wednesday as late buying in
\nbellwether Telekomunikasi Indonesia on expectations of improved
\nfirst-half earnings erased the market's earlier losses, dealers
\nsaid.<\/p>\n
Gains in several regional markets such as in Singapore and
\nThailand also spurred positive sentiment on the local bourse,
\ntraders said.<\/p>\n
\"Buying, however wasn't that strong,\" said a trader with
\nAndalan Artha Advisindo, noting lingering concerns over high
\ninterest rates.<\/p>\n
Bank Indonesia on Wednesday increased its key rate on one-
\nmonth Bank Indonesia notes to 8.49 percent from 8.44 percent
\npreviously.<\/p>\n
The Jakarta Stock Exchange's Composite Index closed up 3.679
\npoints, or 0.3 percent, at 1132.794 after spending most of the
\nsession in negative territory.<\/p>\n
Gainers led decliners 76 to 32, with 79 stocks unchanged.
\nVolume was 1.5 billion shares valued at Rp 1.2 trillion, compared
\nwith two billion shares valued at Rp 1 trillion on Tuesday.<\/p>\n
On the upside, Telekomunikasi Indonesia, or Telkom, rose 2
\npercent to Rp 5,100 ahead of its plan to pay a dividend of Rp 152
\na share to shareholders registered as of Friday.<\/p>\n
Paper producer Tjiwi Kimia jumped 11 percent to Rp 3,025 on
\nexpectations of improved 2005 financial performance after a debt
\nrestructuring last month. Bank Lippo advanced 7.4 percent to Rp
\n1,460 on hopes that consortium Swissasia will sell its stake in
\nthe bank at a premium.<\/p>\n
On the downside, automotive company Astra International lost
\n2.3 percent to Rp 12,650 on swift profit-taking after gaining 2.4
\npercent on Tuesday on news it will buy a 54 percent stake in a
\ntoll-road company.<\/p>\n
Dealers said they expect Indonesian shares to trade higher on
\nThursday, led by further gains in Telkom.<\/p>",
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