Local market turnover sinks ahead of Chinese New Year
Local market turnover sinks ahead of Chinese New Year
JAKARTA (JP): Trading volume on the local financial market
plummeted on Monday to less than half the usual turnover as major
players took a rest for the Chinese New Year holiday.
Analysts said share turnover dropped to Rp 60 billion from
between Rp 150 billion and Rp 200 billion on regular days, while
foreign exchange transactions fell to less than US$50 million
from about $100 million.
Currency dealers said the absence of offshore operators caused
trading volume to drain sharply.
Dealers said the rupiah benefited from the extremely light
trading to firm slightly to 8,575 against the U.S. dollar, even
as share prices fell nearly 1 percent.
The rupiah, which opened at 8,650/8.700, continued to gain
ground on Monday as Bank Indonesia, the central bank, sold
limited dollar amounts to take advantage of the absence of
offshore operators.
Markets in Kuala Lumpur, Shanghai, Taipei and Seoul were
closed on Monday and there was half-day trading in Hong Kong and
Singapore in observation of the Lunar New Year on Feb. 16.
The rupiah, which traded in the 8,575 to 8,700 range, closed
1.4 percent stronger at 8,757 on Monday compared to 8,700 last
Friday.
Currency dealers said the rupiah could further advance to as
high as 8,500 against the dollar if the central bank continued
its dollar purchases.
The Jakarta Stock Exchange (JSX) Composite price index fell
3.63 points to 396.92 on total turnover of 122.67 million shares
valued at Rp 64.84 billion.
Decliners outdistanced advancers 44 to 15, with 90 stocks
unchanged.
Stockbrokers confirmed trading activities were quiet because
of the closure of several regional equity markets on Monday.
"Trading activities were dull, with some local traders going
home earlier than usual," a broker with a local securities firm
said.
Vonny Juwono, an institutional sales broker with Trimegah
Securindolestari, said many of the foreign brokerage firms
operating in the local market did not make significant
transactions on Monday.
Jardine Fleming Nusantara and Merrill Lynch Indonesia were the
only brokerage firms which placed orders of more than Rp 10
billion.
"The market is pretty quite," she said.
Stock analysts said they anticipated a slowdown in the market
this week because the absence of foreign investors would likely
weigh stock prices down further.
However, the head of research of Vickers Ballas Tamara, Ferry
Yosia Hartoyo, said investors should remain focused on state-
owned firms and companies with defensive balance sheets.
"Stocks of plantation, fishery, mining, pulp and paper and
telecommunication sectors are still worth considering," he said
in a daily market review on Monday.
Telecommunications firm PT Telkom fell Rp 50 to Rp 2,875 on
2.87 million shares traded and international call operator PT
Indosat slid Rp 325 to Rp 11,625 on 268,500 shares changing
hands. (aly)