ADRs rally on economic reform news

ADRs rally on economic reform news

NEW YORK (Reuters): Indonesian ADRs headed higher in heavy trade Tuesday, reflecting market optimism about economic reforms in the troubled southeast Asian nation.

The overall market in ADRs -- American Depositary Receipts -- rose on signs of stabilization in the Asian crisis and on a rally in computer-related stocks.

"It's probably going to be like this for the next three or four days," a trader said. "I don't see anything out of Asia that is going to make things melt."

The gains came after Indonesian President Soeharto assured a U.S. envoy he saw the need to carry out wide-ranging economic reforms. Indonesia's currency, the rupiah, and its markets have tumbled on fears Jakarta would not comply with terms of a $43 billion bailout by the International Monetary Fund.

Bellwether telephone company PT Telekom was among volume and percentage-gain leaders on the New York Stocks Exchange as it rose 7/8, or 11.5 percent, to 8-1/2.

The Jakarta Growth Fund topped the exchange's percentage-gain list, rising 7/16, or 13.5 percent, to 3-11/16.

International telecommunications provider Indonesian Satellite Corp (Indosat) was up 1-6/16, or 10.6 percent, to 14-5/16, and also landed a spot on the percentage-rise list.