Rupiah slips to 7,850 as stocks slightly up

Rupiah slips to 7,850 as stocks slightly up

JAKARTA (JP): The rupiah slipped further to close at 7,850
against the U.S. dollar in extremely quiet dealings on Thursday,
with most banks closing their dealing rooms earlier than usual,
currency dealers said.

But stock prices on the local market edged up 0.3 percent,
supported by buying programs on certain second- and third-line
stocks, brokers said.

Currency dealers said that the rupiah, which closed at 7,825
on Wednesday, was almost unmoved on Thursday as most market
participants were on their Christmas and year-end holidays.

A chief dealer with a joint-venture bank said, "There were
virtually no trading activities right after the lunch break."

Dealers said that some state banks were active in bidding
dollars either to settle their offshore obligations or finance
their customers ahead of the year end.

"We do not know the purpose of buying dollars but they seem
to be financing the country's food imports ahead of the holiday,"
the dealer said.

The country's financial markets will be closed Friday and will
reopen on Dec. 28.

Dealers said that trading activities were expected to be quiet
as most participants were still on their year-end break until
January next year.

But unlike the rupiah, share prices on the local market
climbed 0.3 percent on Thursday, with the Jakarta Stock Exchange
(JSX) Composite Price index closing 1.34 points firmer to 401.85
on a total turnover of 105.13 million shares valued at Rp 80.76
billion.

Gainers led losers by 45 to 24 with 80 stocks remaining
unchanged.

Stockbrokers said the trading volume had subsided on Thursday
with most traders already having left the trading floor much
earlier than the usual time.

Imelda Kwan, an institutional sales broker with Trimegah
Securindolestari, said, "We have anticipated such thin trading
because most people are on holiday."

A BNI securities analyst, Fitri Murniati, said on Thursday
that trading had declined sharply on Thursday and would decline
further ahead of the year's end as most investors were on their
year-end break.

"The market has anticipated such a decline in trading volume,"
she said, pointing out that investors were expected to enter the
local market in early January, next year.

Imelda said the absence of foreign investors on the local
hammered market, due to lack of fresh incentives, was expected to
be sustained until early January, 1999.

Brokers said the main price gauge was expected to sink below
the 400-key points level ahead of the year's end.

"The main price index will likely support its level of 380,"
Imelda said. (aly)