Ambon Riot sets stock market, rupiah ablaze

Ambon Riot sets stock market, rupiah ablaze

Rendi A. Witular, The Jakarta Post, Jakarta

After posting an all-time record high, the Jakarta stock
market plunged to its lowest level in a month on Thursday
following fresh unrest in Ambon, the capital of Maluku province,
which thus far has claimed more than 30 lives.

The Jakarta Composite Index dropped by 1.95 percent or 15.966
points to 801.967, on volume of 1.53 billion shares worth Rp 987
billion (US$114 million).

President of the Jakarta Stock Exchange (JSX) Erry Firmansyah
said that the decline was mostly attributable to the country's
worrying security situation, following a sectarian clash in
Ambon.

"Investors feared that the incident will be a precursor to
another prolonged sectarian clash on the island. But I think it
is just a short-term psychological effect, and I am sure the
Index will be back on track," said Erry in a press briefing.

Among the top losers are telecommunication firm PT Indonesian
Satellite Corp (Indosat), mining company PT Inco, automotive firm
PT Astra International, and cigarette company PT H.M Sampoerna.

Shares of Indosat fell by Rp 250 to Rp 4,175, Inco by Rp 3,350
to Rp 34,800, Astra by Rp 300 to Rp 5,800 and Sampoerna by Rp 250
to Rp 5,050.

The Index reached an all-time record high of 818.159 on April
27 on optimism over Indonesia's improving political and security
situation following the trouble-free legislative election.

Erry said that in line with the previously strong Index
performance, the JSX, as a business entity, had also booked a
relatively good profit during the first three months of this
year.

He said that the JSX has recorded a profit before tax of Rp
13.97 billion in the first quarter of this year. The company's
full-year gross profit last year reached Rp 18.3 billion, up from
14.35 billion in 2002.

Average daily transaction volume on the JSX jumped by 578
percent to 2.23 billion shares in the first quarter from only 328
million in the same period last year. Average daily transaction
value surged by 293 percent to Rp 1.07 trillion from Rp 272
billion in the January-March period of last year.

JSX market capitalization also increased nearly twofold to Rp
553.83 trillion from Rp 284.29 trillion.

Erry said that during the first quarter, three companies had
listed their shares on the JSX with proceeds from their initial
public offering (IPO) amounting in total of around Rp 300
billion. The three companies are state-owned construction firm PT
Adhi Karya, financing company PT Adira Finance and investment
firm PT Hortus Danavest.

The JSX had earlier projected 20 companies to be listed on the
bourse this year. The bourse currently has 388 firms on its list.

In a bid to help increase optimism among investors, the JSX
plans to invite all presidential candidates and their proposed
economic ministers to give a presentation on future economic
policy for Indonesia.

Elsewhere, the Indonesian rupiah fell to Rp 8,700 from Rp
8,643 against the U.S. dollar due to the security issue and the
greenback's strength against other regional currencies.