Stocks and rupiah dive over unrest<\/p>\n
JAKARTA (JP): Share prices plunged by nearly 5 percent and the
\nrupiah lost almost 8 percent on fears that escalating riots in
\nMedan, North Sumatra, will spread to other major cities.<\/p>\n
Stock brokers said sell-off of blue-chip stocks and shares of
\npolitically connected companies pushed the Jakarta Stock
\nExchange's Composite Index down to 414.62 in moderate trade,
\nabout 5 percent lower than 435.16 the previous day.<\/p>\n
The market fear that the often violent student demonstrations
\nin the country's major cities would descend into the riots which
\nhave hit the North Sumatran provincial capital also wielded a big
\nblow to the Indonesian currency. It dropped by nearly 8 percent
\nto end the day at Rp 8,750 against the U.S. dollar.<\/p>\n
Sales director of Bahana Securities Bruce Rolph said yesterday
\nnews of the growing social unrest prompted anxious investors to
\ndump their blue-chip shares and those of politically connected
\nfirms.<\/p>\n
\"Foreign investors keep selling on a cut-loss position,\" he
\nsaid.<\/p>\n
Riots sparked by fuel price hikes have rocked Medan, and
\nthousands of students and workers have taken to the streets in
\nother cities in protest against the economic conditions which
\nhave plunged the country into its worst financial crisis in
\ndecades.<\/p>\n
\"Investors are afraid that the riot in Medan will spread to
\nother cities. If it happens, it will worsen the already weak
\neconomy,\" Rolph said.<\/p>\n
Research director of Socgen Crosby Securities Indonesia Goei
\nSiauw Hong said foreign investors were reluctant to put their
\nfunds into the local bourse because they suspected the persistent
\nsporadic riots could develop into political anarchy.<\/p>\n
\"Things have changed now as the economic crisis has turned
\ninto a political one,\" he said.<\/p>\n
Hong and Rolph said approval of the International Monetary
\nFund (IMF)-arranged US$1 billion credit on Monday failed to
\nrestore investor confidence because the social unrest was now a
\nmore serious problem for the country.<\/p>\n
A broker with BZW Niaga Securities said most foreign investors
\nput sales orders in for politically connected stocks, such as
\nBimantara Citra, which is controlled by President Soeharto's
\nsecond eldest son Bambang Trihatmodjo, and toll-road operator
\nCitra Marga Nusaphala Persada (CMNP), under Soeharto's eldest
\ndaughter, Siti Hardijanti Rukmana.<\/p>\n
Bimantara Citra's stock price lost Rp 150 to close at Rp 675
\non a total turnover of 23.36 million shares. CMNP fell by Rp 75
\nto end the day at Rp 550 on a total turnover of 17.58 million
\nshares.<\/p>\n
The brokers said blue-chip Astra International slid by Rp 100
\nto Rp 1,175 on total turnover of 54 million shares, BNI fell Rp
\n25 to Rp 400 on total turnover of 15.18 million shares, Telkom by
\nRp 175 to Rp 2,875 on 20 million shares, Gudang Garam by Rp 625
\nto Rp 8,575 and HM Sampoerna by Rp 375 to Rp 4,475 on total
\nturnover of 3.10 million shares.<\/p>\n
Total market turnover was around 380.62 million shares worth
\nRp 389.34 billion (US$48.66 million).<\/p>\n
The social unrest also fueled selling pressure in other Asian
\nmarkets.<\/p>\n
In Kuala Lumpur, worries about the unrest also spread to its
\nstock market, with the main price index losing 3.3 percent to
\nclose at 588.39.<\/p>\n
In Singapore, shares were lower amid the fears. The main index
\nfell 20.87 points, closing at 1,448.40.<\/p>\n
In Bangkok, Thailand's main index dropped 7.35 points, or 1.8
\npercent, closing at 393.36, as traders were influenced by the
\ngeneral downward trend in Asia.<\/p>\n
In Manila, shares on the main Philippine index plummeted 56.05
\npoints, or 2.5 percent, to 2,211.13.<\/p>\n
In Tokyo, the main index plunged 2.29 percent, or 357.26
\npoints, closing at 15,243.84 on the first trading day after a
\nlong holiday period.<\/p>\n
In Seoul, the benchmark index fell 3.9 percent to a 1998 low
\nof 376.23 points on a series of negative factors, including high
\nunemployment. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-and-rupiah-dive-over-unrest-1447893297",
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