Stocks rise 6.4%, rupiah remains firm<\/p>\n
JAKARTA (JP): Share prices in the local stock market rose
\nsharply on Friday, with the main price index breaking through the
\n400 level for the first time in two months, securities dealers
\nsaid.<\/p>\n
The dealers attributed the rare price rally on massive buying
\nof a number of blue chip stocks.<\/p>\n
Bullish sentiment in the regional equity markets coupled with
\na steady rupiah-U.S. dollar exchange rate and a relatively calm
\nsituation on the country's political fronts had prompted the
\nbuying mood, a dealer said.<\/p>\n
\"We are really surprised with the sharp increase in share
\nprices today,\" said Vonny Juwono, a dealer with Trimegah
\nSecurindolestari.<\/p>\n
The Jakarta Stock Exchange's Composite Index rose 24.53 points
\nor 6.4 percent to end the week at 403.65 in active trading, with
\ntotal trading volume reaching 581.28 million shares worth Rp
\n491.91 billion (US$65.74 million).<\/p>\n
Gains led losses by 137 to 11 with 49 stocks remaining
\nunchanged.<\/p>\n
Securities analysts said that the absence of massive
\nantigovernment demonstrations during the day encouraged investors
\nto place big orders, especially on large capitalized stocks.<\/p>\n
Fitri Murniati, an analyst with BNI Securities, said that news
\nthat the U.S. Federal Reserve was to further cut interest rates
\nalso helped fuel the buying sentiment.<\/p>\n
Trimegah's Vonny said many foreign brokerage firms, which
\nhalted trading in the past few days due to political uncertainty
\nat home, reentered the market and bought big capitalized stocks
\nwith strong fundamentals.<\/p>\n
They included Merryl Lynch Indonesia, Credit Lyonnais Capital
\nIndonesia and GK Goh Ometraco.<\/p>\n
Most blue chip stocks rose with telecommunication firm PT
\nTelkom rising Rp 50 to Rp 2,825, Tjiwi Kimia gaining Rp 100 to
\nclose at Rp 1,825, mining firm Tambang Timah also rising by Rp
\n200 to end the day at Rp 6,850 while Aneka Tambang pocketed a Rp
\n125 gain to close at Rp 1,750.<\/p>\n
BNI's Fitri said that investors shrugged off the lingering
\npolitical uncertainties at home as student demonstrations had
\nobviously lessened.<\/p>\n
Many students still rallied in the country's major cities but
\nno violence was reported.<\/p>\n
\"Such peaceful rallies will not adversely affect the market
\nsentiment,\" she said.<\/p>\n
The rupiah managed to close firmer at 7,500 against the U.S.
\ndollar on Friday.<\/p>\n
Currency dealers said that the rupiah, which dropped to as low
\nas 15,000 against the American dollar in May at the height of the
\npolitical crisis, was no longer much affected by political
\nissues.<\/p>\n
\"The market just shrugs off the news of protest after it
\nmanaged to withstand the bloody clashes last week,\" a chief
\ndealer with a joint venture bank said.<\/p>\n
Currency dealers said, however, that trading activities
\nremained lackluster due to the absence of fresh market-moving
\nleads ahead of the weekend.<\/p>\n
The bullish sentiment on the rupiah was expected to continue
\nif peaceful students rally did not turn into bloody violence in
\nthe coming days, currency dealers said.<\/p>\n
\"The rupiah is expected to surge to the 7,000 level if there
\nis no further violence,\" a dealer said. (aly)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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