Stocks up 1.5% while rupiah remains stable<\/p>\n
JAKARTA (JP): Share prices on the local tattered market rose
\n1.5 percent on Tuesday after some foreign investors made late
\nbuying orders on selected stocks which had been under selling
\npressures over the past few days, a stockbroker said.<\/p>\n
Currency dealers said the rupiah remained stable, closing at
\n11,100 against the U.S. dollar in moderate dealing.<\/p>\n
Stockbrokers and analysts attributed the slight increase in
\nstock prices to a technical rebound as investors took advantage
\nof the improved performance in regional markets such as Hong Kong
\nand Japan.<\/p>\n
Bali Securities chief stock dealer Hendra Sunarto said, \"The
\nrise is merely a technical rebound as most blue-chip stocks are
\nso undervalued due to selling pressures over the past few days.\"<\/p>\n
The Jakarta Stock Exchange (JSX) Composite Index rose 1.5
\npercent, or 4.04 points, to 260.87 on a total turnover of 143.34
\nmillion shares changing hands valued at Rp 121.52 billion
\n(US$10.95 million).<\/p>\n
Gainers outpaced losers 47 to 24 with 93 stocks unchanged.<\/p>\n
Hendra predicted that such technical rebounding would prevail
\nin the short-term period.<\/p>\n
Swirling market speculation that the government would
\nintroduce a capital control system, which had sparked panic
\nselling over the past few days, had not disappeared.<\/p>\n
This would cap market technical rebound, he said.<\/p>\n
\"Market fear of a possible capital control system has not
\ndiminished. So, investors are still cautious,\" Hendra said.<\/p>\n
Mashill Jaya Securities head of research, Edhi S. Widjojo,
\nadded that foreign investors were still reluctant to enter the
\nlocal battered market because political and social uncertainty at
\nhome had not been restored.<\/p>\n
\"Though there is no big demonstration in the capital or other
\nbig cities, fears of possible demonstrations, and possibly riots
\nin the days ahead has not lessened,\" he said.<\/p>\n
Some experts and government officials have blamed various
\nantigovernment demonstrations and social unrest for the fall in
\nthe Indonesian financial market.<\/p>\n
Trading activities on Tuesday in the local bourse was marred
\nby a 45-minute demonstration by about 35 people from Porsea,
\nNorth Sumatra, in front of the JSX building.<\/p>\n
They demanded the listed pulp and paper producer PT Inti
\nIndorayon Utama stop its operations after it had employed
\nmilitary personnel to intimidate local people living in Porsea
\nand the surrounding area.<\/p>\n
\"We want the company to close down its operation,\" Manahara
\nSiahaan, the speaker of the protest, said Tuesday.<\/p>\n
Stock prices of Inti Indorayon Utama closed Rp 25 lower, to
\nclose at Rp 125 on a total turnover of 1.19 million shares
\nchanging hands.<\/p>\n
But big cap stocks which had been heavily sold in the past few
\ndays recouped some losses Tuesday, with cigarettemaker PT Gudang
\nGaram soaring by Rp 675 to Rp 4,750 on a total turnover of 3.63
\nmillion shares changing hands.<\/p>\n
State-owned cement maker PT Semen Gresik also rose Rp 275 to
\nRp 7,300 on 909.500 shares traded, and state general mining firm
\nPT Aneka Tambang increased by Rp 50 to Rp 1,125 on 6.86 million
\nshares.<\/p>\n
Like the stock market, the rupiah remained stable against the
\ndollar Tuesday as most market participants were reluctant to take
\nany new positions amid lack of fresh leads currency dealers said.<\/p>\n
The rupiah, which opened 11,100\/11,200, closed at 11,000
\nagainst the American dollar after it declined to 11,200 due to
\nlimited dollar demand by local banks and companies to settle
\ntheir offshore obligations.<\/p>\n
A chief dealer with a local private bank said: \"Trading is
\nquiet because no offshore operators are willing to make any new
\nposition on the rupiah,\"<\/p>\n
Dealers said that the rupiah was expected to hover around the
\n11,000 level in the days ahead. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stocks-up-15-while-rupiah-remains-stable-1447893297",
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"sponsor": "Okusi Associates",
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