Rupiah remains weak but stock prices up slightly<\/p>\n
JAKARTA (JP): The rupiah remained weak yesterday due to
\npolitical uncertainty but share prices rose slightly in thin
\ntrading on the wake of late buying support.<\/p>\n
Currency dealers said the rupiah received no respite from last
\nweek's debt accord or the likelihood of the release of the
\nInternational Monetary Fund (IMF)-brokered bailout package late
\nthis week.<\/p>\n
The rupiah closed weaker at 11,850 against the greenback, 2
\npercent lower than its close at 11,600 the previous day.<\/p>\n
Dealers said most market operators remained concerned over the
\ncountry's political and social uncertainties.<\/p>\n
"Offshore funds continue to sideline the market and put their
\nfunds in other currencies like the Thai baht, Malaysian ringgit
\nand Singapore dollar," a dealer with a local private bank said.<\/p>\n
Dealers said commercial demand for the dollar coupled with
\nlabor protests, such as those in Surabaya, East Java demanding
\nthe Maspion Group raise their wages, put more pressure on the
\nrupiah.<\/p>\n
"If similar protests take place in other cities, a possible
\noutbreak is likely to happen which would cause greater political
\nunrest," the dealer said.<\/p>\n
"If this happens, no offshore funds would come to trade the
\nrupiah," the dealer said.<\/p>\n
Dealers said that if discussions between an IMF team and the
\ngovernment to review the IMF-led assistance program bore fruit,
\nthe rupiah's value could improve against the dollar.<\/p>\n
"But even if the IMF resumes the loan, it will not greatly
\nstrengthen the rupiah's value," the dealer said, pointing out
\nthat the country was struggling to face food shortages,
\nskyrocketing inflation rates and massive unemployment.<\/p>\n
The dealers also attributed the weakening rupiah to a
\ncontagion effect from the yen's fall against the American dollar.<\/p>\n
The Japanese yen was quoted at 140.3 to the dollar yesterday,
\nup from its low at 141.05.<\/p>\n
But unlike the rupiah, stock prices on the Jakarta Stock
\nExchange (JSX) took a mild turn for the better yesterday with the
\nmain benchmark price index climbing 1.65 points to 411.07 on a
\ntotal turnover of 177.2 million shares worth Rp 175.73 billion
\n(US$15.95 million).<\/p>\n
Stockbrokers said trading activities remained lethargic as
\nmost investors sidelined themselves from the country's battered
\nmarket due to the political situation.<\/p>\n
"Although the index rose, trading activities remained
\nlethargic with most investors dumping all the stocks they held,"
\na securities broker with Mashill Jaya Securities said.<\/p>\n
Brokers attributed the increase in stock prices to late buying
\non state-owned gold mining firm PT Aneka Tambang and cement maker
\nPT Semen Gersik.<\/p>\n
Stock prices for Aneka Tambang rose Rp 75 to Rp 1,475
\nyesterday on a total turnover of 5.94 million shares on the
\nregular market. Semen Gersik's stocks climbed Rp 1,000 to Rp
\n6,400, with 3.1 million shares changing hands. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-remains-weak-but-stock-prices-up-slightly-1447893297",
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