Rupiah, stocks gain over regional strength<\/p>\n
JAKARTA (JP): Indonesia's financial markets gained ground on
\nWednesday as they tracked the rise of regional markets, currency
\ndealers and stockbrokers said.<\/p>\n
They said the rupiah continued to sustain gains in moderate
\ndealing against the U.S. dollar and stock prices rose 1.1
\npercent,<\/p>\n
Currency dealers said the rupiah, which opened at
\n10,900\/11,000 against the dollar, traded above the 11,000 level
\nfor the whole trading day and closed at 10,800\/10,900.<\/p>\n
Dealers attributed the rupiah's extended gain to the rise of
\nother currencies in the region and persistent dollar-selling by
\ncertain state banks.<\/p>\n
"Besides the rise of regional markets, persistent dollar-
\nselling by state banks was responsible for the strong rupiah," a
\nchief dealer with a local private bank said.<\/p>\n
He said state banks sold between US$10 million and $20 million
\nin the market.<\/p>\n
Dealers said the rupiah could strengthen to 10,500 provided
\nthe rioting in Aceh did not spill over into other provinces in
\nthe next few days.<\/p>\n
Like the rupiah, stock prices on the Jakarta Stock Exchange
\n(JSX) also gained after weeks of continuing losses.<\/p>\n
The JSX Composite Index rose 3.77 points to 329.62 on a total
\nturnover of 279.46 million shares valued at Rp 254.49 billion
\n(US$23.52 million) changing hands.<\/p>\n
Gainers outpaced losers 48 to 46 with 76 shares unchanged.<\/p>\n
Stockbrokers said the rise in the price index was driven by
\nforeign investors buying dual-listed stocks, which were
\nconsidered oversold.<\/p>\n
"But I suspect this rise will not last long as various
\npolitical issues are still unresolved," an institutional broker
\nwith Trimegah Securindo Lestari said.<\/p>\n
The research head of Mashill Jaya Securities, Edhi Widjojo,
\nsaid investors had not found any good reasons to stay in the
\ncountry's battered market.<\/p>\n
"There are no more long-term investors in the local market,
\nmost of the players are short-term traders who base their
\ninvestments on sentiment rather than on fundamentals,"<\/p>\n
He said political and social uncertainty at home and higher
\ninterest rates in the banking sector had made many long-term
\ninvestors shun the local equity market.<\/p>\n
Bank Indonesia said Wednesday the weighted average interest
\nrate of the auction of its one-month paper stood at 70.58 percent
\nper annum, up from 70.44 percent last week.<\/p>\n
"With no positive news in the bruised local market, most
\ninvestors prefer to put their funds in the money market,'
\nMashill's Edhi said.<\/p>\n
Despite selective buying on dual-listed stocks, stockbrokers
\nsaid most investors still continued to discard middle and small
\nsized stocks out of fear that they would be declared bankrupt by
\ntheir creditors in the coming months.<\/p>\n
Market leader state-owned domestic telecommunications firm PT
\nTelkom, which accounts for 17 percent of total market
\ncapitalization on the local bourse, rose Rp 175 to Rp 2,200 on 12
\nmillion shares traded.<\/p>\n
The Salim Group's food giant PT Indofood Sukses Makmur rose Rp
\n200 to Rp 1,650 on 30 million shares traded on market talk that
\nsome offshore parties, especially from Japan, might be about to
\nacquire a significant stake in the debt-ridden instant-noodle
\nproducer. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-stocks-gain-over-regional-strength-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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