Stocks fall almost 4 percent, rupiah stable in thin trade<\/p>\n
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
\nfell almost 4 percent on Friday due to massive selling pressure
\non some blue chip stocks.<\/p>\n
But the rupiah remained stable against the U.S. dollar,
\nclosing at 10,750 after falling to an intraday low of 11,050 as
\nsome investors squared their positions ahead of the weekend,
\ncurrency dealers said.<\/p>\n
Stockbrokers said that bearishness in the regional market as
\nthe result of fears of a global economic recession had extended
\nto the local market, prompting foreign investors to dump most big
\ncapitalized stocks.<\/p>\n
\"The fall of other regional markets in the absence of any
\nfresh leads at home has forced most investors to dump most blue
\nchip stocks,\" an institutional broker with Trimegah
\nSecurindolestari said.<\/p>\n
She said the fall in most European stock markets and the 2.7
\npercent drop in the Dow Jones Industrial Average on Thursday had
\nenervated foreign investor sentiment.<\/p>\n
Associate director of Bahana Securities Andre Cita said the
\nfear of a global recession had cast a shadow on trading
\nactivities on Friday despite small gains in some stocks with
\nstrong fundamentals.<\/p>\n
\"Sentiment is so bad that there is no reason for foreign
\ninvestors to stay here,\" he said.<\/p>\n
Trimegah's broker said that most foreign brokerage firms,
\nwhich usually account for large trading transactions in the local
\nmarket, were making more selling orders than buying orders.<\/p>\n
Jardine Fleming, Credit Lyonnais, HSBC Securities and ING
\nBarings Securities were net sellers on Friday.<\/p>\n
The JSX Composite Price Index fell 3.88 percent or 10.64
\npoints to 263.22 on a total turnover of 263.22 million shares
\nchanging hands in the local market valued at Rp 129. 53 billion
\n(US$12.04 million).<\/p>\n
Losers led gainers 54 to 21 with 77 stocks remaining
\nunchanged.<\/p>\n
Brokers said foreign investors discarded stocks of state
\ntelecommunications firms and mining stocks after experiencing a
\nsharp rise in the last two days.<\/p>\n
State telecommunications firm PT Telkom, which accounts for
\nabout 17 percent of market capitalization in the local bourse,
\nfell Rp 150 to Rp 1,325 on 10,62 million shares changing hands,
\nwhile international call operator PT Indosat was down Rp 100 to
\nRp 5,550 on 582,500 shares changing hands.<\/p>\n
Mining firm PT Tambang Tim slid Rp 475 to Rp 4,050 on 580,000
\nshares traded, while Tjiwi Kimia fell Rp 50 to Rp 925 on 5.30
\nmillion shares.<\/p>\n
Unlike local stocks, the rupiah managed to close relatively
\nstable at 10,750 against the American dollar on Friday.<\/p>\n
\"Some investors sold their dollars to square their positions
\nahead of the weekend,\" a dealer with a local private bank said.<\/p>\n
Dealers said trading activities remained thin as most
\ninvestors did not want to build any new positions on the rupiah
\nfor fear that political uncertainty at home could curtail
\ninvestor sentiment here. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-fall-almost-4-percent-rupiah-stable-in-thin-trade-1447893297",
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