Stocks, rupiah tremble a little as student protests resume<\/p>\n
JAKARTA (JP): The rupiah dipped to 7,600 against the U.S.
\ndollar and stock prices lost 1.1 percent on Tuesday as students
\nresumed large-scale antigovernment demonstrations in the capital.<\/p>\n
Currency traders said the rupiah's fall from Monday's close of
\n7,475 was also due to international market bullishness on the
\ngreenback.<\/p>\n
A chief dealer at a local private bank said the rupiah was
\nrelatively stable for most of the day because players were
\nreluctant to take any new positions ahead of year-end.<\/p>\n
\"It was late buying by local operators that dragged the rupiah
\na bit lower,\" he said.<\/p>\n
The currency traded at the 7,550 level during the day before
\ndipping to 7,600 at the close.<\/p>\n
The dealer said trading in the local unit was still thin and
\nmost offshore players remained on the sidelines.<\/p>\n
Any minor intervention by the central bank would effectively
\nboost the rupiah in such a market, the dealer added.<\/p>\n
\"Limited dollar sales by state banks kept the rupiah at the
\n7,550 level for almost the whole trading day before late buying
\ndrove it down a bit,\" he said.<\/p>\n
Some dealers said the market was actually unmoved by recent
\nlocalized riots but was more concerned by the possibility that
\nrenewed student demonstrations might antagonize the unstable
\nsituation.<\/p>\n
President B.J. Habibie, speaking at the opening of the
\nnational boy scouts' convention, said the stronger rupiah had
\nhelped the economy but lamented that the gains were undermined by
\nrecent unrest.<\/p>\n
\"In the last few weeks we have witnessed the strengthening of
\nthe rupiah which gives hope for our economic recovery,\" Habibie
\nsaid. \"But unfortunately this progress has been countered by
\nsocial and political unrest.\"<\/p>\n
Mirroring the rupiah, share prices on the local market failed
\nto sustain their gains on Tuesday with the main price gauge
\nfalling 1.1 percent.<\/p>\n
Stockbrokers said massive profit taking on several blue-chip
\nstocks in late trading marked the end of a buying spree in the
\npast few days despite political and social instability at home.<\/p>\n
\"Massive profit taking has prevented the share prices from
\ncontinuing their rally,\" a broker with a local securities firm
\nsaid.<\/p>\n
Sigma Batara Fadjar's head of research Fajar Limin Sutandi
\nbelieved profit taking was a logical consequence because \"stock
\nprices in our market have been overbought\".<\/p>\n
Stockbrokers said that even though share prices declined,
\ntrading activities remained aggressive, involving both foreign
\nand domestic investors.<\/p>\n
\"Trading activities were good with most counters active,\" said
\nVonny Juwono, an institutional sales broker with Trimegah
\nSecurindolestari.<\/p>\n
She said that some foreign brokerage firms such as Credit
\nLyonnais, ABN Amro, Jardine Fleming and Vickers Ballas Tamara,
\nwhich had placed huge funds in the local market in the past few
\ndays, continued to enter the market on Tuesday.<\/p>\n
\"We still see some foreign investors putting more funds in the
\nlocal market.\"<\/p>\n
But news of a student demonstration in late trading had forced
\nother foreign brokerage firms, like Merril Lynch Indonesia, ING
\nBarings and Trimegah Securindolestari, to cash in profits on the
\ngains they made the previous days, she said.<\/p>\n
The Jakarta Stock Exchange (JSX) Composite Index closed 4.90
\npoints lower at 420.080 on a total turnover of 1.37 billion
\nshares changing hands valued at Rp 789.50 billion.<\/p>\n
Gainers led losers by 80 to 52, with 76 shares unchanged.<\/p>\n
\"The buying program by domestic investors has prevented the
\nmain price index from declining so sharply,\" Vonny said.<\/p>\n
Most blue-chip stocks, after rallying in the past few days,
\ndeclined on Tuesday. Market leader telecommunications firm PT
\nTelkom slid Rp 100 to close at Rp 3,050 on 18 million shares
\ntraded.<\/p>\n
International call operator PT Indosat shed Rp 200 to Rp
\n11,600 on 11.60 million shares traded, pulp and paper firm PT
\nTjiwi Kimia slid Rp 75 to Rp 1,775 on 20.34 million shares and
\nautomotive firm PT Astra International dropped Rp 25 to Rp 1,150
\non 19.24 million shares. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-rupiah-tremble-a-little-as-student-protests-resume-1447893297",
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