Financial market trading quieter ahead of Xmas

JAKARTA (JP): Trading activities in the local financial market were quiet on Monday with the rupiah closing at 7,725 against the U.S. dollar as share prices inched up 0.13 percent, dealers and stockbrokers said.

Currency dealers said most market participants had stayed away from the local currency market due to the year-end holiday, leaving trading activities in the local currency market on the downward trend.

"The market is dull as there are almost no trading activities," a chief dealer with a joint venture bank said.

The dealers said that most operators had already left the local market at 15.00 (at 22:00 GMT), one and half hours earlier than its regular close at 16.30.

Dealers said that some foreign investment banks, especially those from Singapore, however, were seen unloading their dollars for the rupiah for profit taking purposes on Monday.

"Due to that the rupiah managed to close firmer at 7,650," the chief dealer said.

The rupiah closed Friday at 7,750 to the dollar.

Certain selected offshore investment houses bought the U.S. dollar in their unexpected fresh attack on the rupiah when the local unit stood at 7,400 to the American dollar on Thursday last week.

As a result, the rupiah slid further to nearly break through the 8,000 level.

"Some offshore operators wanted to cash in the gains they made in the previous days," the dealer said.

Dealers said that the rupiah was predicted to be unmoved in the coming days as most operators would be on Christmas and year- end holiday with the rupiah expected to be traded in a narrow range of between 7,400 and 7,500 level against the American dollar.

Meanwhile, share prices in the local market rose slightly on Monday with the Jakarta Stock Exchange (JSX) Composite Index closing 0.54 points higher to 404.50 on a total turnover of around 135.76 million shares changing hands for Rp 124.31 billion.

Decliners outpaced advancers by 54 to 24 with 88 stocks unchanged.

Stockbrokers said holiday seasons coupled with the start of the Muslim fasting month had forced most investors to stay clear of the local market.

"Market activities were dull as most investors were on their holidays," Suhendra, an institutional sales broker with Trimegah Securindolestari said.

He said that certain local investors, who were not on their holidays, bought second and third line stocks in their year-end window dressing operations.

"But this failed to uplift market sentiment significantly as shares of certain blue chip stocks declined," Suhendra said.

Share prices of state-owned telecommunications firm PT Telkom rose Rp 50 to close at Rp 2,775 on 3.13 million shares traded, while international call operator PT Indosat slid Rp 50 to Rp 10,500 on 470,000 shares.

Pulp and paper producer PT Tjiwi Kimia dropped Rp 125 to Rp 1,950 on 1.8 million shares, while cigarette maker PT Gudang Garam gained Rp 425 to Rp 12,350 on 758,500 shares.

Analysts said that the country's unresolved economic and political crises would bar investors from entering the market, even for window-dressing activities.

"We can expect a surge in prices from window dressing if the country's political situation remains calm, but now it is difficult," Fitri Murniati of BNI Securities said.

Brokers said that most foreign brokerage firms operating in the local market had left the market and even some of their trading offices were empty for the year-end holiday.

Trimegah's Suhendra predicted that the main index would hit the support level of 380 points by the year end. (aly)