Stocks, rupiah to get firmer<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The Jakarta stock market is expected to move higher this week
\ndriven mainly by cheap bluechip shares, analysts say.<\/p>\n
Zulfikar, a stock analyst at brokerage firm PT Mandiri
\nSekuritas, said over the weekend that among the bluechip
\ncompanies considered to be undervalued were auto conglomerate PT
\nAstra International, and telecommunications firms PT Indosat and
\nPT Telkom.<\/p>\n
Shares in Indosat would likely move up this week after the
\ngovernment sold a 41.9 percent stake in the state-owned company
\nto Singapore Technologies Telemedia (STT) for Rp 12,950 per
\nshare, compared to Indosat's book value of around Rp 10,000.<\/p>\n
"Having known that the share value in the market had been
\nhovering at around Rp 9,300 to Rp 9,500 since the purchase
\nagreement last week, investors would continue pursuing the shares
\nuntil it stands at a normal value of Rp 10,000," he said.<\/p>\n
According to Zulfikar, as year 2002 drew to a close, the
\nmanagement of listed companies would try to polish the companies
\nperformances through window-dressing, a move that would also help
\nlift sentiment in bluechip firms.<\/p>\n
Shares in Telkom might appreciate after the government
\nannounced last week that it would move ahead with plans to
\nincrease phone charges by an average of 15 percent in January
\n2003.<\/p>\n
"As the shares of the blue chip companies move up, it would
\nlift the Jakarta stock index," Zulfikar said.<\/p>\n
Zulfikar predicted that the Jakarta stock index would move up
\n10 to 15 points this week.<\/p>\n
The Jakarta stock exchange composite index closed up 1.1
\npercent higher on Friday at 425.120 driven by bluechip firms like
\nIndosat, Telkom and Astra.<\/p>\n
The market this week will only open for trading on Monday and
\nFriday due to the Christmas holiday.<\/p>\n
Stock analyst Ferry Latuhihin said a brighter domestic
\neconomic outlook and stable international stock markets would
\ncontribute in strengthening sentiment in the local stock market.<\/p>\n
"The U.S. economy is bouncing back. This is creating
\nconfidence in the international market," he said.<\/p>\n
Switching to the rupiah, Ferry said that rupiah would get
\nfirmer at a range of Rp 8,800 to Rp 8,900 per U.S. dollar.<\/p>\n
He said that the sale of Indosat shares has increased the
\ndollar supply at home, which in turn would strengthen the rupiah.<\/p>\n
He added that the weakening of sentiment against the U.S.
\ndollar would also bode well for the rupiah.<\/p>",
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