Shares prices recover in slow trade

Shares prices recover in slow trade

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
gained ground yesterday in a moderate trade marred slightly by
panic over the earthquake in Jakarta.

The exchange's Composite Index rose 0.6 percent to 670.93 from
666.84 after dropping 2.5 percent last week as investors dumped
bank stocks.

A dealer at a joint venture brokerage firm said many shares,
especially bank shares, recovered but trade was quite as foreign
investors remained sidelined.

The earthquake which occurred at around 15:08 pm prompted
brokers to flee the JSX building, although the market was not
closed.

"All tenants and traders left the trading floor when the
announcement to evacuate was signaled," said one broker outside
the JSX building.

A modest 121 million shares worth Rp 265.17 billion changed
hands .

Bank Negara Indonesia gained Rp 25 to Rp 1,400, Bank
International Indonesia rose Rp 75 to Rp 1,875, and Lippo Bank
added Rp 25 to Rp 6,550.

Multipolar rose Rp 100 to Rp 3,175 and Matahari put on Rp 25
to Rp 3,525 on news that they would merge.

Among the blue chips PT Telkom dropped Rp 75 to Rp 3,825,
Indosat fell Rp 25 to Rp 6,550, Sampoerna lost Rp 50 to Rp 11,400
while rival Gudang Garam surged Rp 500 to Rp 10,550.

Rupiah

The rupiah weakened against the U.S. dollar in solid trade.

Spot rupiah prices were quoted at 2,403.50/04.00. It opened at
2,400.75/401.50.

Forex traders said high liquidity in the money market would
continue until the central bank's new minimum reserve requirement
took affect in April.

Commercial banks must raise their reserves from 3 percent to 5
percent.

"The rise in the reserve requirement will automatically
tighten liquidity because banks have to place more funds with the
central bank," one dealer said. (09)