Stock prices, rupiah fall on political concern<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nlost nearly one percent and the rupiah fell further, closing at
\nRp 9,300 to the U.S. dollar, as anti-government protests
\ncontinued yesterday.<\/p>\n
Stockbrokers said that activity on the JSX remained lethargic
\nfor the whole trading day, with most investors sidelining the
\nmarket.<\/p>\n
\"The country's worsening political situation is prompting most
\nforeign investors to stay out of the market,\" a broker with BZW
\nNiaga Securities said.<\/p>\n
Brokers said that students demonstrations, which in recent
\ndays have resulted in violent clashes between protesters and
\nsecurity officers, had scared away investors.<\/p>\n
University students have staged concerted demonstrations over
\nthe past few weeks demanding President Soeharto's resignation and
\nconcerted efforts to lift the country out of crisis.<\/p>\n
Head of sales at Usaha Bersama Sekuritas, Surya Martara, said
\nthe failure of talks held in Tokyo over the weekend to resolve
\nproblems surrounding the country's US$68 billion private sector
\noverseas debt was also to blame for the sluggish market.<\/p>\n
The JSX Composite index closed at 430.53 yesterday, 0.9
\npercent (4.12 points) down on Friday, with a total turnover of
\n257.85 million shares valued at Rp 275.75 billion (US$30.63
\nmillion).<\/p>\n
Most brokers said stock prices of certain blue chip stocks
\nand politically-well connected stocks like Bimantara Citra, owned
\nby President Soeharto's second son Bambang Trihatmojo, and Citra
\nMarga Nusaphala Persada (CMNP), controlled by President
\nSoeharto's eldest daughter Siti Hardijanti Rukmana, fell on fears
\nthat the country's political situation could worsen.<\/p>\n
Adding to the country's political woes, higher interest rates
\nin the banking system had caused most investors to place funds in
\ntime deposits, which currently offered higher yields, brokers
\nsaid.<\/p>\n
\"The local bourse is facing trouble on two fronts -- the
\npolitical woes and high interest rates,\" the broker from BZW
\nNiaga Securities said.<\/p>\n
The rupiah followed the stock market's downward trajectory in
\nresponse to the worsening political atmosphere in the country,
\ncurrency dealers said.<\/p>\n
They said the rupiah, which opened trading at around Rp 9,250
\nagainst the U.S. dollar, closed the day on Rp 9,300 after
\nmoderate dealing. Most investors were wary of entering the fray.
\n(aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-prices-rupiah-fall-on-political-concern-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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