Rupiah stable, stocks bounce 1.6 percent<\/p>\n
JAKARTA (JP): Indonesia's financial markets remained stable on
\nThursday with the rupiah closing slightly lower at 10,900 against
\nthe U.S. dollar but stocks rising 1.6 percent.<\/p>\n
Currency dealers said the rupiah fluctuated above the 10,000
\nlevel to the U.S. dollar in moderate dealing as most market
\noperators avoided taking long positions on the currency.<\/p>\n
Dealers said that offshore operators, especially from
\nSingapore, did not make any big orders because they were closely
\nwatching on the development of the Malaysia's move to control the
\nforeign exchange trading.<\/p>\n
\"Rupiah trading is very quiet as market participants are
\nwatching the Malaysian ringgit closely,\" a chief dealer with a
\nlocal private bank said.<\/p>\n
The rupiah, which opened at 10,850\/10,950, closed slightly
\nlower at 10,900 against the American dollar compared to
\nWednesday's close of 10,850,<\/p>\n
Dealers said the lackluster rupiah trading was suffocated by
\nconcerns about escalating social unrest triggered by soaring
\nprices of basic commodities despite dollar selling by state banks
\nto prop up the currency.<\/p>\n
\"We have seen state banks continue to sell dollars over the
\npast few days but this failed to improve the rupiah's position
\non Thursday,\" the dealer said, adding the dollar selling was
\nbetween US$10 million and $20 million Thursday.<\/p>\n
Dealers said the rupiah was expected to resume its rise on
\nFriday to break the 10,500 level.<\/p>\n
Stocks on Jakarta Stock Exchange (JSX) rose 1.6 percent on
\ntechnical buying sentiment by short-term investors on certain
\nselective stocks which had been oversold in the past few weeks.<\/p>\n
The JSX Composite Index rose 5.16 points to 334.78 on a 212.81
\nmillion shares valued at Rp 289.64 billion (US$26.57 million).<\/p>\n
Gainers outpaced losers 47 to 42 with 63 shares unchanged.<\/p>\n
Stock brokers said the bull run on certain agricultural stocks
\nfollowing the government's decision to scrap import duties for
\nsome basic commodities slightly improved overall buying sentiment
\non Thursday.<\/p>\n
\"But the slight increase is just a technical rebound after
\nlosses in the past few weeks,\" an institutional sales broker with
\nTrimegah Securindo Lestari said.<\/p>\n
Head of research at Vickers Ballas Tamara Securities Noraya
\nSoewarno said that regional market distress coupled with the high
\ninterest rates at home posed a big dilemma for portfolio
\ninvestors debating whether to enter the equity market.<\/p>\n
\"Investors prefer to put their funds in fixed income
\ninstruments which provide higher yields,\" she said pointing to
\nBank Indonesia's 70 percent auction rate for its one-month
\npromissory notes.<\/p>\n
Brokers said, however, that the overall sentiment remained
\nsomber as investors continued to discard second and third-line
\nstocks.<\/p>\n
\"Even if there is buying sentiment, it is merely for the
\nshort-term ... and it does not reflect the recovery of the
\nmarket,\" Vickers Ballas' Noraya said, pointing out that political
\nuncertainties at home were also responsible for the sluggish
\nmarket.<\/p>\n
Trimegah's brokers said that market speculation that the
\ninstant noodle producer PT Indofood Sukses Makmur had signed a
\ndeal with a Japanese investor to acquire one of its business
\nunits had sparked massive buying orders for the stock on
\nThursday.<\/p>\n
The stock price of Indofood rose Rp 375 to Rp 2,025 on a total
\nturnover 73.71 million shares.<\/p>\n
Plantation firm Astra Agro Lestari rose Rp 150 to Rp 1,975 on
\n3.83 million shares while PT London Sumatra Indonesia was up Rp
\n175 Rp 1,225 on 22.99 million shares changing hands. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-stable-stocks-bounce-16-percent-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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