Rupiah to stabilize, stocks to soar further, say analysts<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The rupiah, having weathered a huge shock last week following
\nthe latest bomb attack in the country, is likely to move within a
\nnarrow range this week with pressures slowly dwindling, analysts
\nsaid on Sunday.<\/p>\n
The local unit closed on a positive note last week at 9,280
\nper dollar after dropping to above 9,400 the day earlier just
\nafter the bombing. In the previous week, the rupiah ended at
\n9,278 a dollar.<\/p>\n
\"For this week, with the panic over, the rupiah I think will
\nhover at relatively the same level,\" Farial Anwar of Currency
\nInvestment Management said.<\/p>\n
\"Also, this week is the last week before the election runoff,
\nwhich would most likely keep investors -- except for speculators
\n-- on the sidelines, applying a wait and see approach.<\/p>\n
\"That will keep the pressure off the rupiah. My prediction is
\nthat -- assuming that nothing extraordinary happens -- it would
\nhover at around the 9,250-9,350 level,\" Farial told The Jakarta
\nPost.<\/p>\n
The election day, which will see President Megawati
\nSoekarnoputri facing Susilo Bambang Yudhoyono for the 2004-2009
\npresidential term, is scheduled for Sept. 20.<\/p>\n
A powerful bomb went off on Thursday in front of the
\nAustralian Embassy, which killed nine people and injured 180
\nothers -- leaving the financial market in limbo on panic selling
\nafterwards.<\/p>\n
But, the rupiah staged a quick recovery the following day on
\noptimism that police would be able to quickly solve the case and
\nthat the attack would not undermine the economy or sabotage the
\nforthcoming presidential election.<\/p>\n
Another analyst, who works for a foreign bank in Jakarta,
\nechoed Anwar's forecast.<\/p>\n
\"Although I do not see any reason for the rupiah to
\nstrengthen, I do not expect it to weaken either. The dollar
\nfactor, which is unlikely to strengthen against other major
\ncurrencies, will also help,\" he told the post.<\/p>\n
\"I thing a movement of more than Rp 200 will be very
\nunlikely.\"<\/p>\n
While the rupiah is expected to be stable, the stock index is
\npredicted to maintain its upward trend with dealers betting the
\nindex to breach the 800-point level.<\/p>\n
The index soared to its highest level in four months on
\nFriday, defying concerns that the bombing would further impede
\nthe country's economic recovery.<\/p>\n
The index dropped 4 percent right after the blast, but
\nregained ground to close 0.8 percent lower on the same day.<\/p>\n
It ended at 797.78 points last week, up by 1.4 percent from
\nthe previous week, with average daily transaction valued at Rp
\n1.08 trillion (US$116.41 million) as against Rp 865.07 billion
\nthe week before.<\/p>\n
\"We expect the index to surpass the 800 point level this week
\non further rebound,\" one stock dealer said, adding that investors
\nwould likely seek gains from undervalued banking shares.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-to-stabilize-stocks-to-soar-further-say-analysts-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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