Rupiah ends up ahead of government local bond issue<\/p>\n
Dow Jones
\nJakarta<\/p>\n
Rupiah closed slightly stronger on Monday, likely on inflows into
\nthe local capital market, dealers said. The dollar closed at Rp
\n8,385, down slightly from its close on Friday at Rp 8,405.<\/p>\n
Dealers said foreign investors exchanged some of their dollars
\nfor rupiah, likely to buy government bonds that would be issued
\nnext week.<\/p>\n
The finance ministry said earlier in the day that it would
\nauction Rp 2.5 trillion in bonds Feb. 24 to help finance the
\nstate budget. The eight-year bond will carry a fixed coupon of 11
\npercent.<\/p>\n
This will be the first batch of the government's plan to
\nauction bonds every month to achieve its target of Rp 28 trillion
\nin bond issuance this year.<\/p>\n
\"I think some foreign investors moved their dollars into
\nrupiah today as they want to participate in next week's bond
\nauction,\" a dealer with a foreign bank said.<\/p>\n
However, the currency market largely ignored news that
\nIndonesia's economy grew 4.1 percent last year, which is slightly
\nabove the 3.97 percent average forecast by economists polled by
\nDow Jones Newswires but in line with the government target.<\/p>\n
While capital inflows are likely to continue on Tuesday,
\ndealers said demand from local companies, including importers, to
\npay their offshore obligations is expected to limit the dollar's
\nlosses.<\/p>\n
Dealers expect the U.S. currency to trade Rp 8,375-Rp 8,410
\nonTuesday.<\/p>\n
Separately, shares ended higher on Monday, with late buying in
\ncigarette and automotive blue chips pushing the main index
\nhigher, dealers said.<\/p>\n
After staying in negative territory for most of the session,
\nthe Jakarta Stock Exchange Composite Index ended up 2.085 points,
\nor 0.3 percent, at 775.225, up from an intra-day low of 767.567.<\/p>\n
Gainers led decliners 70 to 49, with 88 stocks unchanged.<\/p>\n
Volume was 354 million shares valued at Rp 97 billion.<\/p>\n
Cigarette-maker Hanjaya Mandala Sampoerna rose Rp 100, or 2.1
\npercent, to Rp 4,900, and car maker Astra International ended up
\nRp 50, or 0.9 percent, at Rp 5,400 on bargain-hunting.<\/p>\n
Also higher were shares in crude palm oil producer Astra Agro
\nLestari, which gained Rp 50, or 2.8 percent, at Rp 1,850 on
\nexpectations of higher sales this year.<\/p>\n
Bellwether Telekomunikasi Indonesia ended unchanged at Rp
\n7,650.<\/p>\n
Dealers said investors also bought shares in many second-line
\nshares after recent falls.<\/p>\n
Second-line property company Bakrieland Development rose Rp
\n55, or 23 percent, to Rp 290 and mining company Bumi Resources
\ngained Rp 50, or 8.7 percent, at Rp 625.<\/p>\n
Dealers said they expect the market on Tuesday to trade flat
\nto slightly higher on bargain-hunting in select blue chips.<\/p>",
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"sponsor": "Okusi Associates",
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