Stock prices likely to remain volatile<\/p>\n
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
\nare likely to remain volatile this week due to persistent anxiety
\nover a weakening rupiah against the U.S. dollar, securities
\nanalysts and brokers said.<\/p>\n
The securities analysts said the persistent decline of the
\nrupiah against the American dollar would continue to affect
\nstocks trading on the JSX despite a rise in the last two days of
\nlast week.<\/p>\n
The rupiah breached the psychological level of 4,000 Friday
\ntouching a new historic low of 4,020 against the U.S. dollar in
\nafternoon trading before closing at 3,970\/90.<\/p>\n
Securities analysts said that they remained concerned over the
\nrupiah's persistent decline, fueled by a continued demand for
\ndollars by local companies to cover foreign debts which would
\nmature by the end of the year.<\/p>\n
\"I think people still will closely watch the direction of the
\nrupiah this week,\" Mohammad Sjahrial, the research head of
\nPentasena Securities said last week.<\/p>\n
Harry Danardojo, sales director of Lippo Securities, said that
\nstock brokers would focus their attention on the rupiah.<\/p>\n
\"The sooner the rupiah reaches its new equilibrium -- without
\ngovernment intervention -- the quicker the stock market will
\nrecover,\" he said.<\/p>\n
Most securities analysts said last week that the announcement
\nby Minister\/State Secretary Moerdiono about President Soeharto's
\nhealth would create negative sentiment in the stock market.<\/p>\n
Moerdiono said that the President would take a ten-day rest.<\/p>\n
\"I would like to announce that the presidential medical expert
\nteam has advised the President to take a rest,\" Moerdiono
\nsaid.<\/p>\n
\"When President Soeharto went to Germany for a medical checkup
\nlast year, the main price index on the JSX fell,\" one analyst
\nsaid.<\/p>\n
In July 1996, President Soeharto went to Germany for a medical
\nexamination at a cardiac hospital resulting in a clean bill of
\nhealth.<\/p>\n
However, some other stock analysts expressed optimism over
\nnews that Minister of Finance and Indonesian businessmen would
\njoin forces to regain foreign investor confidence in the
\ncountry's economy.<\/p>\n
A stock broker with a joint venture securities firm said that
\nthe market could get a boost from the news that a group of
\nprominent businessmen and personnel from the Ministry of Finance
\nwould go to Washington and New York to persuade creditors to roll
\nover their debt.<\/p>\n
\"I think news about the business visit of the Minister of
\nFinance and other businessmen is good. They'll be able to
\npersuade the creditors about the Indonesian companies' foreign
\ndebts,\" he said.<\/p>\n
The JSX composite index closed 13.07 points higher last week
\nto 414.778.<\/p>\n
The average daily turnover was 547.40 million shares changing
\nhands compared to 326 million in the previous week.<\/p>\n
The average daily transaction value was Rp 265.94 billion
\n(US$101.06 million) last week in comparison to Rp 291.57 billion
\nin the previous week.<\/p>\n
Most state big capitalized stocks gained ground last week with
\nstate-owned telecommunications firm PT Telkom rising Rp 225 to Rp
\n2,900 and satellite operator Indosat by Rp 300 to Rp 8,575.<\/p>\n
Cigarette maker Sampoerna rose Rp 125 to Rp 4,975, while
\ncompetitor Gudang Garam was up Rp 1,250 to Rp 9,000 and Bank
\nNegara Indonesia gained Rp 25 to Rp 600.<\/p>\n
Bank Internasional Indonesia and Bank Dagang Nasional
\nIndonesia (BDNI), however, closed unchanged at Rp 475 and Rp 400
\nrespectively last week. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-prices-likely-to-remain-volatile-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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