JFX to list two new gold contracts
JFX to list two new gold contracts
JAKARTA: The Jakarta Futures Exchange will launch two new gold
contracts Aug. 1, in a bid to boost trading volume, Hasan Zein
Mahmud, the exchange's president director, said Monday.
The two contracts are the rolling gold contract and the
rolling gold index contract, Hasan said.
"Currently, trading volume of gold futures is 200 to 250 lots
a day. We expect the rolling gold contract to see trading volume
of 300 lots a day by the end of the year," he said.
One lot equals one kilogram.
According to the exchange's director, G.W. Sudomo, both
contracts are meant to be risk management tools for investors
exposed to dollar-rupiah volatility as well as establishing a
local benchmark for gold trading.
Though both contracts are rupiah-denominated, deliveries are
in London, Sudomo said.
A rolling gold contract has daily expiration dates, and
deliveries can be postponed at a premium or a discount over the
day's settlement price, he added.
A rolling gold index contract is similar to the rolling gold
contract, except that it traces the ratio of gold prices in
rupiah and dollar terms, according to Sudomo. -- Dow Jones
Bank Buana to hold rights issue
JAKARTA: PT Bank Buana Indonesia said Monday it plans to hold
a 1-for-5 rights issue, priced at Rp 500 (5.4 U.S. cents) a
share, August 26.
The total rights shares, which will amount to around 248.2
million, will be listed on the Jakarta Stock Exchange and
Surabaya Stock Exchange Sept. 18.
Bank Buana said it will use 20 percent of the proceeds from
issuing the rights shares to set up new branches, 20 percent to
develop its technology, 10 percent to improve human resources
development, and 50 percent to provide loans.
Last year, the bank channeled a Rp 2.70 trillion in loans,
compared with Rp 1.81 trillion in 2000. During the first five
months of this year the bank has loaned Rp 3.16 trillion to its
customers. -- Dow Jones
IBM signs contract with Honda
NEW YORK: International Business Machines Corp. said on Monday
it signed a deal with Honda Motor Corp. that will make it easier
for drivers to find the closest gas station or restaurant by
asking the car's computer for help.
IBM said Honda will offer in its 2003 Accord models, for sale
in September, a navigation system that is integrated with voice
recognition software and a small touch screen.
The voice recognition system works by touching a button on the
steering wheel and then speaking aloud. The software then
responds, using the car's audio system to give driving
directions.
The voice recognition software, based on IBM's ViaVoice
product, understands different speech accents and has a larger
vocabulary, according to IBM director of automotive and
telematics solutions Raj Desai.
"It's closer to the natural ability to have a dialogue, rather
than just remembering key words, which is what the previous
generation systems had," Desai said. -- Reuters
Honda enjoys profit surge to US$900m
TOKYO: Japan's number two automaker Honda Motor Co. Ltd. said
Monday profits surged to a record high of US$900 million in the
three months to June thanks to a weaker yen and strong motorbike
sales.
Its group net profit for the quarter grew 20.4 percent to
107.6 billion yen ($900 million) from the previous year.
Honda's revenue rose 10.0 percent over the period to 1,936.8
billion yen on a best-ever pre-tax profit of 163.7 billion yen --
a 20.7 percent improvement.
"Earnings rose due to the weaker yen... as well as strong
demand for motorbikes and other vehicles," the firm said in a
statement.
A weaker yen makes Japanese products more cost-competitive
abroad and boosts the value of overseas profits when repatriated.
Looking ahead, the company maintained a forecast for the full
year to March 2003, expecting a record high net profit of 460
billion yen, 700 billion yen in pre-tax income and revenue of
8,100 billion yen. -- AFP