Stocks fall on Ambon, weak global markets<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Jakarta stock index tumbled by 2.31 percent on Friday due
\nto negative sentiment created by uncertainty over the domestic
\npolitical and security situation, and declines in a number of
\nbenchmark stock markets.<\/p>\n
The Jakarta Composite Index ended down 18.554 points at
\n783.413 on a trading volume of 1.83 billion shares worth Rp 1.07
\ntrillion (US$124 million).<\/p>\n
Stock analyst David Ferdinandus of CIMB securities said the
\ndecline was undoubtedly driven by the recent sectarian clashes in
\nAmbon, the capital of Maluku province, and jitters over the
\nsecurity situation during the upcoming presidential election.<\/p>\n
\"Investors are concerned that the recent unrest in Ambon is
\nbeing orchestrated by certain parties to worsen the country's
\nsecurity situation ahead of the presidential election. That is
\nwhy foreign investors have decided to pull out of the market and
\ntake what gains they have already made,\" said David.<\/p>\n
He explained that many investors trading on a short-term basis
\nhad decided to leave the market after the Index hit their target
\nof 800 points.<\/p>\n
Excessive sell-offs in selected bluechips, notably those of
\ntelecommunication firms, cigarette companies and banks, pushed
\nthe index lower.<\/p>\n
Telecommunications company PT Telekomunikasi Indonesia
\n(Telkom) was down by Rp 350 at Rp 8,050 and its rival PT
\nIndonesian Satellite also lost ground, ending Rp 200 lower at Rp
\n3,975.<\/p>\n
Cigarette firm PT Gudang Garam dropped by Rp 350 to Rp 14,600,
\nwhile automaker PT Astra International declined by Rp 100 to Rp
\n5,700.<\/p>\n
Bank Central Asia shed Rp 75 to close at Rp 3,900, state-owned
\nBank Mandiri declined by Rp 50 to Rp 1,450 and Bank Rakyat
\nIndonesia lost Rp 100 to close at Rp 1,725.<\/p>\n
Aside from local negative sentiment, drops in several
\nbenchmark stock markets due to possible interest rate hikes in
\nChina and the United States also weighed on the market, David
\nsaid.<\/p>\n
After a market holiday on Thursday, Japan's Nikkei closed 2
\npercent lower at 11,761.79, tracking a fall on Wall Street after
\nU.S. growth data showed strong inflationary pressures in the
\nfirst quarter.<\/p>\n
Taiwan shares also closed down by 4.4 percent at 6117.81.<\/p>\n
David said the market was likely to trade in a range of
\nbetween 770 and 804 next week.<\/p>\n
The rupiah ended steady against the U.S. dollar on Friday to
\nclose at Rp 8,700, unchanged from its close on Thursday, as
\nrumored intervention by Bank Indonesia managed to curb the
\ndollar's rise, which was sparked by a sharp drop in the local
\nstock market, dealers said.<\/p>\n
Dow Jones quoted dealers as saying that offshore investors
\nbought dollars as they unloaded Indonesian stocks.<\/p>\n
Bank Indonesia is suspected to have sold dollars when the
\ngreenback was trading at around Rp 8,700.<\/p>\n
Bank Indonesia's deputy governor Aslim Tadjuddin said the
\ncentral bank was always ready to intervene to help the rupiah if
\nnecessary. He did not, however, specifically confirm that it had
\nsold dollars on Friday.<\/p>\n
Dealers said market players had also bought the U.S. currency
\nahead of the long weekend here. The local currency market will be
\nclosed Monday because of a Muslim holiday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-fall-on-ambon-weak-global-markets-1447893297",
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"sponsor": "Okusi Associates",
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