Rupiah weakens slightly but stocks get stronger<\/p>\n
JAKARTA (JP): The rupiah weakened slightly against the U.S.
\ndollar yesterday following some selling from state banks, while
\nthe stock market maintained its strength as a result of
\ninvestors' continuing to buy stocks in certain state-owned firms.<\/p>\n
The rupiah slid to 14,700 against the U.S. dollar in the
\nafternoon from 14,500 the morning, but stock prices on the
\nJakarta Stock Exchange (JSX) gained 2.8 percent, currency dealers
\nand stockbrokers said.<\/p>\n
Currency dealers said trading in the local foreign exchange
\nmarket was still very slow, but some state banks sold rupiah for
\nthe dollar, which helped to push the rupiah down slightly.<\/p>\n
\"I heard that some state banks bought dollars today. But so
\nfar it is not clear what they were buying for,\" a dealer with a
\nlocal bank said.<\/p>\n
\"I think it was this dollar buying which pushed the rupiah
\ndown today because in the morning the currency was still trading
\nat 14,500.\"<\/p>\n
The rupiah closed at Rp 14,675\/14,6775 in Jakarta yesterday.
\nThe currency closed at Rp 14,500 last Friday, the last day of
\ntrading before the holiday weekend.<\/p>\n
Dealers said dollar demand should have dropped sharply because
\nmost local commercial banks had settled their interbank debts and
\ntrade finance arrears and the Frankfurt debt agreement to
\nreschedule $80 billion in corporate debts had become effective on
\nJuly 1.<\/p>\n
A dealer with another local bank said secessionist
\ndemonstrations and violence in Irian Jaya had somehow influenced
\nrupiah trading.<\/p>\n
\"The market was quite concerned with that happening, fearing
\nthat it could spread into other provinces,\" he said.<\/p>\n
Dealers said the market was hoping for dollar supplies from
\nmultilateral financial agencies to start flowing in after the
\nWorld Bank approved a US$1 billion loan to Indonesia and said an
\nadditional $6 billion from international donors should be ready
\nsoon.<\/p>\n
In a move to support the rupiah, Bank Indonesia maintained its
\nhigh interest rate policy by offering a three percentage point
\npremium above other corresponding promissory notes.<\/p>\n
Dealers said Bank Indonesia was offering overnight interest
\nrates of 51 percent, interest rates of 57 percent on one week
\ndeposits, 59 percent on two week deposits, 61 percent on one
\nmonth deposits, 56 percent on two month deposits, 47 percent on
\nthree month deposits, 37 percent on six month deposits, and 39
\npercent on 12 month deposits.<\/p>\n
The rates remained unchanged from Friday.<\/p>\n
The weakening rupiah and high interest rates did not deter
\ninvestors from trading on the local bourse, which gained 2.8
\npercent.<\/p>\n
The JSX Composite Index rose 13.4 points to close at 483.945,
\nwith a total trading turnover of 412 million shares valued at Rp
\n522.25 billion (US$35.5 million).<\/p>\n
Mashill Jaya Securities' head of research, Edhi S. Widjojo,
\nsaid the gain was fueled by the frantic buying of listed state-
\nowned firms, especially gold and nickel mining company PT Aneka
\nTambang and tin mining company PT Tambang Timah, following the
\nsudden rise in the price of shares in state cement maker PT Semen
\nGresik.<\/p>\n
\"I think investors do not want to miss the opportunity to make
\na huge gain after seeing what happened to shares in Semen Gresik.
\nInvestors are now running after Tambang Timah and Aneka Tambang,\"
\nhe said.<\/p>\n
He said Aneka Tambang and Tambang Timah were both very
\nattractive to foreign investors, adding that their price earning
\nratio was still quite low compared to Semen Gresik.<\/p>\n
Shares in Tambang Timah rose Rp 475 to close at Rp 7,525,
\nAneka Tambang shares soared Rp 225 to Rp 2,050, and shares in
\nSemen Gresik shot up Rp 3,200 to Rp 12,350.<\/p>\n
Stockbrokers said both local and foreign investors were
\nchasing shares in Semen Gresik once they resumed trading on the
\nJSX from the start of the afternoon session.<\/p>\n
Trading of shares in Semen Gresik was suspended last Wednesday
\nat the company's request when talks on the planned sale of the
\ngovernment's stake in the company reached a critical phase.<\/p>\n
The government said on Friday that Mexico's Cementos Mexicanos
\nSA de CV (Cemex) had won the first round of bidding for the 35
\npercent government stake in the company with a bid of $1.38 per
\nshare.<\/p>\n
Cemex said it would purchase a further 16 percent stake in
\nSemen Gresik from other shareholders through a tender offer to
\nget a controlling stake.<\/p>\n
The government said yesterday that it would sell another 5
\npercent if Cemex failed to buy the required 16 percent stake from
\nother shareholders. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rupiah-weakens-slightly-but-stocks-get-stronger-1447893297",
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