Stock, currency markets would be flat this week : analysts
\nJP\/13\/Market<\/p>\n
Rupiah, stocks to remain flat this week: Analysts<\/p>\n
A'an Suryana
\nThe Jakarta Post
\nJakarta<\/p>\n
The rupiah and local stocks are expected to remain flat this week
\namid the absence of fresh leads and a relatively stable political
\ncondition, according to analysts.<\/p>\n
Currency Management Group analyst Farial Anwar, however, said
\nthat if Wall Street plunged again, it could create pressure on
\nthe local currency.<\/p>\n
Farial predicted the rupiah would be stable this week,
\nhovering around at Rp 8,800 to Rp 9,000 per U.S. dollar.<\/p>\n
"The rupiah is entering a consolidation period," said Farial.<\/p>\n
The Rupiah closed at Rp 8,830 on Friday.<\/p>\n
The market didn't react to the announcement of the 2003 state
\nbudget draft and the narrower fiscal deficit of 1.3 percent of
\ngross domestic product from 2.5 of GDP this year.<\/p>\n
The IMF praised the budget draft as "a sound budget which
\nshould help reinforce macroeconomic stability."<\/p>\n
Farial said that the government's 2003 state budget draft,
\nunveiled by President Megawati Soekarnoputri on Friday, did not
\nlift sentiment in the rupiah because market players doubted
\nwhether the government could meet the 5 percent economic growth
\ntarget as stated in the budget proposal.<\/p>\n
"There will be no more big events this week and sometimes to
\ncome, therefore the rupiah would likely be more stable," said an
\nanalyst at a foreign currency firm.<\/p>\n
Farial, however, warned that the rupiah could be under
\npressure if stocks on Wall Street plunged again, which would
\ncause stock investors here to also unload some of their stocks
\nand exchange their rupiah funds with dollars.<\/p>\n
Stock analysts said that the local equity market would likely
\nremain flat this week unless the U.S. markets plunged further.<\/p>\n
"The selling of shares in PT Telkom on Friday had managed to
\ntemporarily pull up the stock index. But, market players are
\nstill cautious over what will happen on Wall Street," said stock
\nanalyst Edi S. Widjojo.<\/p>\n
Indonesian shares ended higher on Friday, led by buying in the
\nTelkom shares. The good performance of Telkom shares was mainly
\ndue to latest financial report by the company, which reported
\nstrong first half-earnings.<\/p>\n
The Jakarta Stock Exchange composite index closed at 450.98
\nFriday.<\/p>\n
Edi predicted that the share index would hover around 445 to
\n455 this week.<\/p>\n
Separately, Hengky Sumarli from Kim Eng Securities, said that
\nmarket players should turn their eyes to consumer product
\ncompanies, as the country's economic growth would still be mainly
\ndriven by consumer spending.<\/p>\n
Shares at cigarette giants PT HM Sampoerna and PT Gudang
\nGaram, should up this week, Hengky said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-currency-markets-would-be-flat-this-week-analysts-1447893297",
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