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)