Rupiah still weak as stocks slip further

Rupiah still weak as stocks slip further

JAKARTA (JP): The rupiah remained weak, closing flat at 7,750
against the U.S. dollar in very quite trading on Friday as stock
prices closed 0.3 percent lower due to profit taking,
currency dealers and stock brokers said.

Currency dealers said that the beleaguered rupiah continued to
be traded in a very narrow range between 7,750 and 7,800 on
Friday due to lack of fresh leads in the local currency market.

"Trading was quiet and volume was very thin ahead of year-end
holidays. Most operators have left the market empty," a chief
dealer at a local private bank said.

Dealers said the rupiah should range between 7,500 and 8,000
toward year-end provided there is no big political or social
unrest.

They also said that trading activities were expected to lessen
next week because of the Muslim fasting month and Christmas
holidays.

Like the rupiah, share prices in the local market wilted again
on Friday, dragged down by extended profit taking on gains made
the previous days and lack of fresh leads in the battered local
market.

The Jakarta Stock Exchange (JSX) Composite Index fell 0.3
percent (1.62 points) to 403.96 on a total turnover of 155.69
million shares changing hands worth Rp 163.02 billion.

Decliners outnumbered advancers by 51 to 33 with 79 stocks
unchanged.

Stock brokers said that persistent antigovernment protests,
which in the past few months failed to negatively affect market
sentiment, surprisingly scared most investors away from the local
market on Friday forcing them to discard stocks they bought the
previous day.

"Investors are again concerned that antigovernment protest
might turn violent," Vonny Juwono, a broker at Trimegah
Securindolestari, said.

Brokers said that foreign fund managers, who still allocated a
a measure of their funds despite the country's political social
tension in the past few weeks, did not enter the local market due
to rising tension between students and the security authorities
on Thursday.

"Foreign investors are out of the question now as they have
not found any meaningful guide to entering here," head of
research of BNI Securities Adrian Rusmana said.

Trimegah's Vonny said foreign brokerage firms like ABN Amro,
Merrill Lynch Indonesia, SBC Warburg, Jardine Fleming, who were
active in the previous days, were no longer present in the market
on Friday.

Stock brokers said that trading volume in the local bourse had
significantly declined to just around Rp 150 billion on Friday,
almost half of its daily transaction value recorded in the
previous weeks.

"There is nothing special with this small volume, considering
the approaching year-end. Some foreign fund managers are already
on holiday," another broker said.

Large-cap stocks ended mixed, with market leader state-owned
telecommunications firm PT Telkom closed unchanged at Rp 2,725 on
2.6 million shares traded.

International call operator PT Indosat gained Rp 225 to close
at Rp 10,550 on news that it would issue rights shares to raise
US$200 million to finance its expansion.

Cigarette maker PT Gudang Garam lost Rp 150 to Rp 11,925 on
164,000 shares traded, while competitor PT HM Sampoerna ended
unchanged at Rp 5,250 on 164,000 shares.

Pulp and paper company PT Tjiwi Kimia slid Rp 75 to Rp 2,075
on 1.7 million shares changing hands, while automotive firm PT
Astra International gained Rp 25 to Rp 1,025 on 2.1 million
shares. (aly)