Share prices, rupiah gain ground in active trading
Share prices, rupiah gain ground in active trading
JAKARTA (JP): After weeks of decreases, share prices surged in
active trading yesterday in line with the bullish sentiment in
regional markers.
Securities and foreign exchange dealers said that the bullish
regional market and no news of riots in the country also brought
the rupiah to an intraday high of 12,600 against the U.S. dollar.
"It is really a good day. The bullish sentiment overseas,
combined with no reports of fresh unrest at home are really
encouraging," a dealer said, describing the trading sentiment
during the day.
Widespread rumors that there will be massive rioting ahead of
the Aug. 17 Independence Day celebrations have negatively
affected local financial markets in the past several days.
Troops were seen closely guarding business centers and other
public places yesterday and no incidents were reported.
"The ups and downs of the rupiah over the past few weeks has
been determined by the social and political climate ... and the
absence of news on riots really boosted the currency," the dealer
said, adding that some Singaporean operators, who have been
active in deflating the rupiah, were not active yesterday.
The rupiah closed firmer at 12,600/12,800 to the American
dollar yesterday, higher than Thursday's close of 12,950 to the
dollar.
Some state banks were seen selling dollars for rupiah to
improve the rupiah's stand against the dollar, dealers said.
"If the state banks sold a substantial amount of U.S. dollars,
the rupiah might have broken the 12,500 level," the dealer said,
pointing out that state banks sold a meager US$10 million
yesterday.
Dealers said the rupiah might continue to rally against the
U.S. dollar in coming days provided that no fresh riots take
place in Jakarta or other major cities.
"If the rupiah has broken the 12,500 level, it might test
12,000 afterward," another dealer with a private bank said.
Taking the rupiah's lead, stock prices on the Jakarta Stock
Exchange (JSX) ended 2.8 percent higher yesterday as most
investors, taking advantage of the calm, bought certain selected
blue-chip stocks.
The JSX Composite Index rose 11.68 points to 414.63 yesterday
on a total trading turnover of 493.42 million shares valued at Rp
1.13 trillion changing hands on the regular market.
Gainers outpaced losers by 70 to 28 with 69 stocks remaining
unchanged and 121 untraded.
Stocks brokers said investors in the local market ignored the
rumors of vast unrest which had made most of them nervous over
the past few weeks.
"I think people feel comfortable enough as there has been no
news of riots. As a result, investors are putting in large buying
orders on certain stocks," the head of research of Trimegah
Securindo Lestari, David Chang, said.
Stock brokers said trading activities on the local market were
active because the country had remained relatively calm.
"This is good news for some investors, besides some stocks
have been oversold," a broker with Mashill Jaya Securities said.
Some blue-chip stocks ended higher yesterday with instant
noodle Indofood Sukses Makmur rising Rp 125 to Rp 2,150 on 29.59
million shares, cigarette maker HM Sampoerna rose Rp 300 to Rp
2,825 on 18.40 million shares while its competitor Gudang Garam
rose Rp 350 to Rp 8,150 on 237,500 shares. Gold and nickel
producer Aneka Tambang rose Rp 175 to Rp 2,275 on 16.95 million
shares. (aly)