Stock prices end lower on news of SBI rate rise
Stock prices end lower on news of SBI rate rise
JAKARTA (JP): Prices on the Jakarta Stock Exchange (JSX)
reversed their upward trend yesterday on news of the increase in
interest rates on Bank Indonesia's promissory notes (SBI),
brokers said.
The brokers said buying dominated the market in early trade
but was not sustained as investors sold their stocks to get quick
cash.
"Many investors sold their stocks to benefit from the increase
in interest rates. It really killed the positive market
sentiment," a broker with Trimegah Securities said.
The central bank, Bank Indonesia, raised its one-week SBI rate
to 43 percent from 25 percent, the 14-day SBI rate to 44 percent
from 24 percent, the one-month rate to 45 percent from 22
percent; the three-month rate to 30 percent from 19 percent; the
six-month rate to 20 percent from 18 percent; and the one-year
SBI rate to 18 percent from 16 percent.
Stock analysts said the interest rate hike pushed up the
battered rupiah.
The currency closed at 8,950 to the American dollar yesterday,
7.7 percent higher than its close last week at 9,700.
The JSX Composite Index closed 0.41 points lower at 516.32
points with a total turnover of 926.54 million shares changing
hands on the regular market worth Rp 835.20 billion (US$93.93
million) yesterday.
Brokers said the main price index rose 1.8 percent in early
trade and then fell in the afternoon due to the change in the
market trend.
Other Asian share prices closed mixed yesterday with Hong Kong
and Tokyo posting modest gains after profit-taking swept both
bourses amid a lack of strong direction, dealers said.
In Hong Kong, the Hang Seng index was up 30.10 points at
11,594.33, off an early low of 11,488.91 and an early high of
11,671.70.
In Tokyo, the key Nikkei stock average of 225 selected issues
on the Tokyo Stock Exchange rose 38.36 points to end the session
at 16,868.83, while the broader Topix index of all first section
issues edged down 4.57 points to 1,250.49.
In Australia, the main indicator, the All Ordinaries index,
closed 4.1 points higher at 2,779.3, pipping by 0.1 point the
previous highest close, reached jointly on Sep. 25 and Oct. 1
last year.
In Singapore, the Straits Times Industrials lost 18.67 points
to end trading at 1,660. 44, while the broader All-Singapore
index fell 2.07 points to 431.69.
In Kuala Lumpur, the 100-share weighted composite index rose
4.55 points to end at 735.79. The lesser second board climbed
1.99 points, or 1.1 percent, to 187.20.
In Bangkok, the Stock Exchange of Thailand composite index
ended the day up 3.92 points at 503.67 in thin trade, also buoyed
by a stronger baht, while the selected SET 50 index closed 0.42
firmer at 37.13.
In Manila, the Philippine Stock Exchange index gained 35.92
points to close at 2,310.06.
In Seoul, the composite index closed down 9.72 points at
511.90.
In Shanghai, the B share index fell 0.73 points to close at
54.99 points while the A share index of locally-traded stocks
ended down 7.88 points, or 0.6 percent, to 1,243.68 points.
In Taipei, the Taiwan Stock Exchange weighted price index
dropped 98.47 points to 8, 757.59.
In New Zealand, the NZSE-40 ended down 30.75 points at
2,319.27. (aly)