Robust rupiah hits 8,575, stocks edge up 0.5%
Robust rupiah hits 8,575, stocks edge up 0.5%
JAKARTA (JP): The rupiah continued its winning streak on
Thursday, carding 8,575 against the U.S. dollar, and stock prices
regained some of the losses of the previous day.
Currency dealers and analysts said news the International
Monetary Fund (IMF) was ready to start disbursing its loans on a
quarterly basis boosted the currency because it signaled a rise
in international confidence in the government.
The IMF has disbursed its Indonesia bailout package totaling
US$41 billion on a monthly basis. Monthly tranches of about $1
billion are being converted into rupiah, helping to support the
currency in a thin market.
State banks' limited dollar selling also boosted the rupiah,
dealers said.
"State banks apparently sold some dollars in the morning,
pushing the rupiah to 8,575. But in the afternoon, the currency
slid back again," a chief dealer with a local private bank said.
The rupiah opened at 8,750 against the dollar, hitting the
day's high in morning trade. But the currency eased in the
afternoon and closed at 8,700.
The local unit closed Wednesday at 8,800 to the greenback.
Bank Indonesia Governor Sjahril Sabirin said in Singapore on
Wednesday that the rupiah may extend its gains toward the 7,000
level.
Although it has gained about 20 percent this month, the rupiah
is still down about 60 percent in a year, making it one of the
world's worst performers.
The stronger rupiah is bringing relief to local corporations
that earn their revenue in rupiah and have foreign borrowings.
Share prices on the local stock market were slightly firmer on
Thursday, supported by selective buying in late trading on
certain stocks in a positive response to the strong rupiah,
stockbrokers said.
The Jakarta Stock Exchange (JSX) Composite Index closed 0.5
percent firmer, or 1.65 points, at 304.84 on total turnover of
112.76 million shares valued at Rp 133.92 billion.
Advancers led decliners by 39 to 36, with 77 stocks unchanged.
A stock analyst with BNI Securities, Fitri Murniawati, said
investors placed buying orders on the selected stocks because a
robust rupiah would eventually save those firms from the crisis
this year and next year.
"At least, with a strong rupiah, companies with huge dollar
debts are expected to survive this year." She added that the
strengthened rupiah would provide the firms with breathing space
to repay their debts.
Stockbrokers said, however, that trading activities remained
sluggish because most investors had gone sideways again after
several days of trading engagement.
A broker with a local securities firm said that most
investors, who have taken profits in the last two days, continued
to cash in profits in the morning session on Thursday.
State-owned domestic telecommunications firm PT Telkom -- the
market leader -- slid Rp 25 to close at Rp 1,825 on 12.69 million
shares changing hands, while international call operator PT
Indosat climbed Rp 125 to Rp 6,950 on 664,000 shares.
Gold and mining firm PT Aneka Tambang rose Rp 25 to Rp 1,375
on 2.70 million shares, agribusiness firm PT Astra Agro Lestari
increased Rp 50 to Rp 1,550 on 4.51 million shares, and pulp and
paper producer PT Tjiwi Kimia inched up Rp 50 to Rp 1,125 on 2,46
million shares. (aly/rid)