Rupiah gains strength as Habibie's prospects dim<\/p>\n
JAKARTA (JP): The rupiah increased slightly against the U.S.
\ndollar in thin trading on Friday due to lessening concern that
\nB.J. Habibie would remain president.<\/p>\n
Analysts said that growing speculation that the People's
\nConsultative Assembly (MPR) would reject Habibie's accountability
\nspeech helped prevent the rupiah from falling further.<\/p>\n
\"The rejection of Habibie's accountability speech will have no
\npolitical consequences for the President. But it will certainly
\nlessen his chance to be elected,\" a noted analyst said.<\/p>\n
The rupiah, after trading in a range of 7,950 and 8,200 to
\nthe U.S. dollar, finally closed at 8,050 on Friday, slightly
\nhigher than 8,150 on Thursday.<\/p>\n
Currency dealers said trading was generally thin as most money
\nmarket players took a wait-and-see attitude.<\/p>\n
\"Most investors took to the sidelines of the market until the
\nnew president is elected next week,\" one dealer said.<\/p>\n
Bank Indonesia Governor Sjahril Sabirin said he believed the
\nrupiah should strengthen to between Rp 6,000 and Rp 7,000 to the
\ndollar after next week's presidential election, even if Habibie
\nbeats the odds and is elected.<\/p>\n
He said the rupiah would return to a \"realistic level\" after
\nthe date because the election of a new president would bring
\nstability, whichever candidate ultimately takes office.<\/p>\n
Many analysts in Jakarta take a negative view of the possible
\nelection of Habibie to the presidency, in particular because of a
\nrising tide of street protests against his government.<\/p>\n
Thousands of students took to the streets on Friday to demand
\nMPR members not to reelect Habibie. Some of the protesters set
\npassing vehicles in the Central Business District on fire while
\nothers stopped cars in search of military and police personnel.<\/p>\n
Shares in the Jakarta Stock Exchange (JSX) also traded in
\nvery thin volume and slow pace as most investors went on the
\nsidelines to await the election of the new president on
\nWednesday.<\/p>\n
Hovering within negative territory almost the whole day, the
\nJSX finally closed about one-fifth point higher following highly
\nsuspected government market intervention and the last-minute
\nspeculative local buying.<\/p>\n
The local exchange index closed almost unchanged to end the
\nweek at 567.91 points, with 287 million shares changing hands at
\na total value of Rp 294 billion.<\/p>\n
The index lost 20.3 points or 3.4 percent during the week.<\/p>\n
\"The public's negative reaction and the content of the speech
\nitself have sent the market to a noticeable wait and see,\" said
\nBudi Ruseno, an analyst from PT Bhakti Investama.<\/p>\n
Budi said that he noticed the index went up unexpectedly
\nduring late trading.<\/p>\n
\"The index surged at the very end of the day's session. This,
\nof course, raised suspicion of intervention,\" he said.<\/p>\n
He said the slow-moving index finally was able to close higher
\nafter it reached more than minus seven points in the morning
\nsession.<\/p>\n
He said that he saw a noticeable surge in the price of big cap
\nstocks in very late trading.<\/p>\n
\"Cigarette maker PT Gudang Garam which was at Rp 17,950 in the
\nmorning somehow closed the day's trading at Rp 18,400,\" he said.<\/p>\n
Its competitor H.M. Sampoerna, which fell as low as Rp 15,525
\nin the morning, maintained to close at Rp 15,700. State-owned
\ntelecommunications company PT Telkom was at Rp 2,975 in the early
\ntrading but closed at Rp 3,025, Budi said.<\/p>\n
Other big cap shares experiencing similar fluctuations were
\ngiant automaker PT Astra International, pulp and paper
\nmanufacturer PT Indah Kiat and PT Tjiwi Kimia.<\/p>\n
Another analyst said there was also late buying of cheap
\nshares by local investors on speculation the MPR would reject
\nHabibie's speech on Saturday, triggering a rally in the market.
\n(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-gains-strength-as-habibies-prospects-dim-1447893297",
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