Rupiah slides against dollar as stock prices fall<\/p>\n
JAKARTA (JP): The rupiah slid against the U.S. dollar again
\nyesterday and stock prices on the Jakarta Stock Exchange (JSX)
\ncontinued their decline in quiet trading amid fears of a
\nworsening economic situation and lingering political tension.<\/p>\n
Currency dealers said the rupiah was barely traded yesterday.
\nIt closed at 11,750 against the greenback, compared to Friday's
\nclose of 11,500.<\/p>\n
They said the positive market response over the successful
\ndebt accord late last week, producing a rollover plan for the
\ncountry's mounting private debt, did not last long because
\npolitical uncertainties continued to overshadow the economic
\nfactors.<\/p>\n
\"The debt accord is good, but offshore funds continue to stay
\naway from our currency market due to political risks,\" a chief
\ndealer with a local private bank said.<\/p>\n
He predicted that even the possible commitment from the
\nInternational Monetary Fund to disburse US$1 billion of its
\nsecond tranche of the $43 bailout package would not be able to
\nprop up the rupiah unless social and political uncertainties
\nfaded.<\/p>\n
\"The IMF loan, like the debt accord, will only prevent the
\nrupiah from declining further,\" the dealer said, adding that the
\nrupiah would likely to continue to hover around 11,000 to 12,000
\nagainst the dollar.<\/p>\n
Dealers said the rupiah's fate would also be influenced by the
\nmovement of the Japanese yen, which fell beyond 140 to the dollar
\nyesterday.<\/p>\n
Following the decline in the rupiah, stock prices on the JSX
\nfell 0.09 points yesterday to close at 409.41 on a total turnover
\nof 190.40 million shares valued at Rp 195.34 billion (US$17.75
\nmillion).<\/p>\n
Stockbrokers said that trading activities were extremely thin
\nas investors did not have any appetite to put significant funds
\ninto the country's battered market.<\/p>\n
\"It is just another blue day as there are no foreign investors
\nwho are willing to put their funds here right now,\" Hendra
\nSunarto, a broker with Bali Securities said.<\/p>\n
Stockbrokers said that local and foreign investors continued
\nto discard stocks linked to Soeharto's family and cronies because
\nthose companies had been under public scrutiny over the past few
\nweeks.<\/p>\n
The stock price of Bimantara Citra, a giant conglomerate
\ncontrolled by Soeharto's second son Bambang Trihatmodjo, shed Rp
\n25 to Rp 300 on 468,500 shares traded, toll-road operator Citra
\nMarga Nusaphala Persada, controlled by Soeharto's eldest daughter
\nSiti Hardijanti Rukmana slid Rp 50 to Rp 300 on 2.96 million
\nshares and noodle maker Indofood Sukses Makmur, a unit of Salim
\nGroup controlled by Liem Sioe Liong, a long associate of
\nSoeharto, fell Rp 175 to Rp 1,325 on 39.39 million shares traded.
\n(aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-slides-against-dollar-as-stock-prices-fall-1447893297",
"image": ""
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