Rupiah ends lower on profit-taking after gains<\/p>\n
Dow Jones
\nJakarta<\/p>\n
The rupiah lost ground on Thursday as foreign banks bought back
\ndollars to lock in profits against the local unit after its
\nrecent gains, dealers said.<\/p>\n
The dollar closed at Rp 10,065 compared with its close on
\nWednesday at Rp 10,005.<\/p>\n
Dealers said foreign banks bought back the greenback as it
\nseemed to find solid support around Rp 10,000, thanks to dollar
\ndemand from local companies.<\/p>\n
\"For local companies, any level close to Rp 10,000 is a good
\nlevel to buy the dollar,\" a dealer said. He also said capital
\ninflows to the local market continued on Thursday, but were
\nunable to offset dollar demand.<\/p>\n
Dealers said the volatility in the market diminished as Bank
\nIndonesia bans margin trading of the rupiah against foreign
\ncurrencies starting on Thursday. The regulation, which was
\nunveiled last week, was part of measures to help the rupiah.<\/p>\n
\"There were no longer crazy (dollar-rupiah) quotes in the
\nmarket as margin traders are out of the market,\" a dealer with a
\nlocal bank said. He was referring to the spike in the quote that
\nhas occurred in the past each time the rupiah is under selling
\npressure because margin traders desperately need dollars to cover
\ntheir shorts.<\/p>\n
Dealers expect the dollar to trade between Rp 10,000 and Rp
\n10,150 on Friday.<\/p>\n
Elsewhere, shares ended lower for the third straight session
\non Thursday due to selling in consumer blue chips, amid growing
\nexpectations that they will book poor earnings this year due to
\nhigh fuel prices, dealers said.<\/p>\n
The Indonesian government has said it will increase fuel
\nprices early next month in an effort to cut the budget deficit
\nand maintain economic growth.<\/p>\n
\"Investors continued to consolidate their positions ahead of
\nthe announcement of the new fuel prices,\" said a trader with
\nParamitra Securities.<\/p>\n
The Jakarta Stock Exchange Composite index ended down 0.7
\npercent, or 7.721 points, at 1050.906.<\/p>\n
Decliners led advancers 70 to 39, with 71 stocks unchanged.<\/p>\n
Volume fell to 915 million shares valued at Rp 1.1 trillion,
\ncompared with 1.25 billion shares valued at Rp 1.2 trillion on
\nWednesday.<\/p>\n
Automotive company Astra International lost 3.3 percent to Rp
\n10,300 on worries that high fuel prices will discourage people
\nfrom buying cars.<\/p>\n
Likewise, cigarette maker Gudang Garam lost 2.8 percent to Rp
\n10,600 and food company Indofood dropped 2.6 percent to Rp 760 on
\nexpectations that high fuel prices will weaken consumer spending
\nand hurt their earnings this year.<\/p>\n
Dealers said sporadic foreign bargain hunting in select mining
\nblue chips limited the fall in the main index.<\/p>\n
Nickel miner International Nickel Indonesia (Inco) ended 2.7
\npercent higher at Rp 15,000, rebounding after falls in the
\nprevious three sessions. Oil producer Medco Energi gained 0.7
\npercent at Rp 3,475 on bargain hunting.<\/p>\n
Dealers said they expect the index to fall further on Friday
\non continuous selling in consumer stocks.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-ends-lower-on-profit-taking-after-gains-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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