Rupiah ends lower as stocks up 0.4 percent
Rupiah ends lower as stocks up 0.4 percent
JAKARTA (JP): The rupiah dipped against the U.S. dollar on
Tuesday, but stock prices gained ground in thin trading as the
year winds down.
Dealers said trading activities on the currency market slowed
as money market players chose the sidelines ahead of Christmas
and year-end holiday.
"It was just another bleak trading day on Tuesday with
offshore operators totally absent from the local market," a chief
dealer with a joint venture bank said.
Dealers said the rupiah, which opened at 7,650, slid further
to close at 7,750 on Tuesday on the back of fresh dollar demand
by local commercial banks.
"While offshore operators were absent, local banks entered the
market to buy dollars," the dealer said. The rupiah closed at
7,650 on Monday.
The dealer said several private commercial banks bought the
dollar in efforts either to settle their offshore obligations or
finance those of their customers.
Trading volume significantly declined to around US$50 million
on Tuesday, compared to the daily $100 million average the
previous week.
Dealers said the rupiah was expected to be traded in a narrow
range between 7,500 and 7,800 against the dollar in the coming
days in the absence of antigovernment protests which occurred
almost daily before the Muslim fasting month of Ramadhan.
Unlike the rupiah, share prices edged up 0.4 percent on
Tuesday, supported by limited buying orders on second line
stocks, especially consumer stocks, ahead of the Christmas and
year-end holiday.
The Jakarta Stock Exchange (JSX) main price index ended 1.96
points higher to close at 406.46 on a total turnover of 215.75
million shares changing hands valued at Rp 223.06 billion
(US$28.78 million).
Losers led advancers by 50 to 34 with 95 stocks unchanged.
Brokers said a 1 percent increase on Wall Street helped the
local share prices to surge in the absence of foreign investors
in the local market.
"The rise on Wall Street helped the share prices to rise
slightly on Tuesday," said Vonny Juwono, an institutional sales
broker with Trimegah Securindolestari.
Brokers said that trading had significantly subsided ahead of
the holiday season.
Several blue-chip stocks, which were responsible for the ups
and downs of the main price index in the local battered bourse,
fell on Tuesday, with state telecommunications firm PT Telkom
down by Rp 25 to Rp 2,750 on 1.79 million shares, Indosat by Rp
175 to Rp 10,325 on 555,500 shares, and pulp and paper producer
PT Indah Kiat & Paper by Rp 75 to Rp 2,100 on 2.91 million
shares.
Head of research of Mashill Jaya Securities Edhi Widjojo said
that the absence of foreign investors had caused trading
activities to remain lethargic on Tuesday.
"Most foreign investors are on their holidays so trading
activities remain bleak."
Brokers said trading volume was expected to decline further
ahead of the year-end holiday, with the main benchmark price
index falling below the 400-key point to hit 380 in the coming
days. (aly)