Stocks, rupiah up on growing optimism<\/p>\n
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
\nrose 1.7 percent yesterday on growing market speculation that the
\ngovernment would soon peg the rupiah to the U.S. dollar at a
\nfixed rate, stockbrokers said.<\/p>\n
They said the market also anticipated that the new cabinet
\nministers, to be announced by President Soeharto this morning,
\nwould soon give an impetus to solve the crisis.<\/p>\n
After appointing the cabinet lineup, President Soeharto would
\nlikely introduce a fresh move early next week to mend the
\ncountry's paralyzed economy, stockbrokers said.<\/p>\n
\"I think many people in the market are optimistic that the
\nPresident will soon move to establishing the currency board
\nsystem or just fixing the rupiah's rate against the dollar,\" a
\nbroker with a joint-venture securities said.<\/p>\n
He said the market saw that the stalemate between the
\ngovernment and the International Monetary Fund over the former's
\nplan to introduce a currency board would eventually ease after
\ntalks between Soeharto and visiting Japanese Prime Minister
\nRyutaro Hashimoto this weekend.<\/p>\n
Harita Securities president Christina Lim said stock prices
\nimproved because the market also expected that the new cabinet
\nwould soon give clear direction on how the government would deal
\nwith the crisis.<\/p>\n
\"Hopefully, we will see that direction very soon, after the
\nannouncement of the new cabinet ministers,\" she said.<\/p>\n
Stockbrokers said trading activities remained moderate for the
\nwhole trading day yesterday though several foreign brokerage
\nhouses were making big buying orders on certain blue chips.<\/p>\n
Brokers said leading foreign brokerages houses like Indosuez
\nWICarr, Merrill Lynch, Jardine Fleming Nusantara, SBC Warburg,
\nCredit Lyonnais were net buyers.<\/p>\n
The JSX Composite index closed up 8.54 points to 506.73
\nyesterday from the previous day's 498.18.<\/p>\n
Trading volume reached 468.65 million shares, changing hands
\non the regular market worth Rp 489.10 billion ($47.02 million).<\/p>\n
Tracking the rise of stock prices, the rupiah strengthened
\nslightly against the dollar in moderate transactions.<\/p>\n
The rupiah closed at 10,400 against the dollar yesterday, up
\nfrom the previous day's close of 10,500, currency dealers said.<\/p>\n
\"Nobody wants to make any transaction when the market
\nremains uncertain like this,\" a local bank chief dealer said.<\/p>\n
He said most foreign operators, especially from Singapore, had
\nsquared their positions ahead of the weekend.<\/p>\n
However, some operators were seen selling dollars, in the name
\nof their clients who want to get rupiah to pay taxes next week.<\/p>\n
Dealers said the composition of the new cabinet and the
\nresults of talks between Soeharto and Hashimoto would determine
\nthe fate of rupiah on Monday. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-rupiah-up-on-growing-optimism-1447893297",
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