Rupiah Ends Lower On Dlr Demand From Importers
Rupiah Ends Lower On Dlr Demand From Importers JP/14/Market
Rupiah Ends Lower On Dlr Demand From Importers
Dow Jones/Jakarta
The Indonesian rupiah ended lower on Monday as dollar demand from local importers dragged on the local unit, dealers said.
The dollar closed at Rp 9,810, up from its close on Friday at Rp 9,775.
Dealers said that state banks were the main dollar buyers, likely mainly on behalf of oil importer Pertamina.
"State banks usually buy dollars on behalf of Pertamina," a dealer said.
Dealers said that the rupiah failed to benefit from news that Malaysia's Khazanah will pay around $336 million for a 52 percent stake in Indonesia's Lippo Bank, and Singapore's UOB will spend $285 million to boost its stake in Indonesia's Bank Buana to 53 percent from 23 percent.
Still, dealers said that the payment of the transactions could eventually help the rupiah.
Dealers expect the dollar to trade between Rp 9,790 and Rp 9,840 on Tuesday.
Indonesian shares ended lower on Monday led by selling in bellwether Telekomunikasi Indonesia as the fresh weakness of the rupiah and concerns over a suspected bird-flu outbreak kept overall sentiment weak.
"The market also ran out of fresh leads," said a trader with a local securities firm.
Bird flu has been suspected in the deaths of three people in Indonesia, and President Susilo Bambang Yudhoyono promised on Monday that there would be no "cover up" in the country's battle against the disease.
The Jakarta Stock Exchange's Composite Index fell 3.201 points, or 0.3 percent, to 1128.440.
Decliners led gainers 58 to 54, with 70 stocks unchanged. Volume was 1.55 billion shares valued at Rp 957 billion, compared with 2.5 billion shares valued at Rp 1.4 trillion, c Friday.
The dollar was trading higher at Rp 9,810, compared with Friday's close of Rp 9,775 on rising dollar demand from local companies to repay their foreign debt.
Telkom fell 1.9 percent to Rp 5,150 after the company on Friday finished registering shareholders eligible for its Rp 144 a share dividend.
Gas and oil producer Medco Energi lost 8.1 percent to Rp 3,400 on profit-taking and renewed fears that the company would sell a 49 percent stake in a global depositary receipt issue on the Luxembourg bourse at current prices.
Also lower were Bank Rakyat, which fell 2.5 percent to Rp 2,950, and Bank Mandiri, which dropped 0.7 percent to Rp 1,490, on lingering concerns over high interest rates which could hurt the banks' net interest margins.
Automotive company Astra International bucked the trend, rising 0.8 percent to Rp 12,300 on a rebound after sharp falls last week.
Dealers said they expect Indonesian shares to trade slightly higher on Tuesday on a rebound in telecommunication blue chips.