Stocks rise 6.4%, rupiah remains firm
Stocks rise 6.4%, rupiah remains firm
JAKARTA (JP): Share prices in the local stock market rose
sharply on Friday, with the main price index breaking through the
400 level for the first time in two months, securities dealers
said.
The dealers attributed the rare price rally on massive buying
of a number of blue chip stocks.
Bullish sentiment in the regional equity markets coupled with
a steady rupiah-U.S. dollar exchange rate and a relatively calm
situation on the country's political fronts had prompted the
buying mood, a dealer said.
"We are really surprised with the sharp increase in share
prices today," said Vonny Juwono, a dealer with Trimegah
Securindolestari.
The Jakarta Stock Exchange's Composite Index rose 24.53 points
or 6.4 percent to end the week at 403.65 in active trading, with
total trading volume reaching 581.28 million shares worth Rp
491.91 billion (US$65.74 million).
Gains led losses by 137 to 11 with 49 stocks remaining
unchanged.
Securities analysts said that the absence of massive
antigovernment demonstrations during the day encouraged investors
to place big orders, especially on large capitalized stocks.
Fitri Murniati, an analyst with BNI Securities, said that news
that the U.S. Federal Reserve was to further cut interest rates
also helped fuel the buying sentiment.
Trimegah's Vonny said many foreign brokerage firms, which
halted trading in the past few days due to political uncertainty
at home, reentered the market and bought big capitalized stocks
with strong fundamentals.
They included Merryl Lynch Indonesia, Credit Lyonnais Capital
Indonesia and GK Goh Ometraco.
Most blue chip stocks rose with telecommunication firm PT
Telkom rising Rp 50 to Rp 2,825, Tjiwi Kimia gaining Rp 100 to
close at Rp 1,825, mining firm Tambang Timah also rising by Rp
200 to end the day at Rp 6,850 while Aneka Tambang pocketed a Rp
125 gain to close at Rp 1,750.
BNI's Fitri said that investors shrugged off the lingering
political uncertainties at home as student demonstrations had
obviously lessened.
Many students still rallied in the country's major cities but
no violence was reported.
"Such peaceful rallies will not adversely affect the market
sentiment," she said.
The rupiah managed to close firmer at 7,500 against the U.S.
dollar on Friday.
Currency dealers said that the rupiah, which dropped to as low
as 15,000 against the American dollar in May at the height of the
political crisis, was no longer much affected by political
issues.
"The market just shrugs off the news of protest after it
managed to withstand the bloody clashes last week," a chief
dealer with a joint venture bank said.
Currency dealers said, however, that trading activities
remained lackluster due to the absence of fresh market-moving
leads ahead of the weekend.
The bullish sentiment on the rupiah was expected to continue
if peaceful students rally did not turn into bloody violence in
the coming days, currency dealers said.
"The rupiah is expected to surge to the 7,000 level if there
is no further violence," a dealer said. (aly)
JAKARTA (JP): Share prices in the local stock market rose
sharply on Friday, with the main price index breaking through the
400 level for the first time in two months, securities dealers
said.
The dealers attributed the rare price rally on massive buying
of a number of blue chip stocks.
Bullish sentiment in the regional equity markets coupled with
a steady rupiah-U.S. dollar exchange rate and a relatively calm
situation on the country's political fronts had prompted the
buying mood, a dealer said.
"We are really surprised with the sharp increase in share
prices today," said Vonny Juwono, a dealer with Trimegah
Securindolestari.
The Jakarta Stock Exchange's Composite Index rose 24.53 points
or 6.4 percent to end the week at 403.65 in active trading, with
total trading volume reaching 581.28 million shares worth Rp
491.91 billion (US$65.74 million).
Gains led losses by 137 to 11 with 49 stocks remaining
unchanged.
Securities analysts said that the absence of massive
antigovernment demonstrations during the day encouraged investors
to place big orders, especially on large capitalized stocks.
Fitri Murniati, an analyst with BNI Securities, said that news
that the U.S. Federal Reserve was to further cut interest rates
also helped fuel the buying sentiment.
Trimegah's Vonny said many foreign brokerage firms, which
halted trading in the past few days due to political uncertainty
at home, reentered the market and bought big capitalized stocks
with strong fundamentals.
They included Merryl Lynch Indonesia, Credit Lyonnais Capital
Indonesia and GK Goh Ometraco.
Most blue chip stocks rose with telecommunication firm PT
Telkom rising Rp 50 to Rp 2,825, Tjiwi Kimia gaining Rp 100 to
close at Rp 1,825, mining firm Tambang Timah also rising by Rp
200 to end the day at Rp 6,850 while Aneka Tambang pocketed a Rp
125 gain to close at Rp 1,750.
BNI's Fitri said that investors shrugged off the lingering
political uncertainties at home as student demonstrations had
obviously lessened.
Many students still rallied in the country's major cities but
no violence was reported.
"Such peaceful rallies will not adversely affect the market
sentiment," she said.
The rupiah managed to close firmer at 7,500 against the U.S.
dollar on Friday.
Currency dealers said that the rupiah, which dropped to as low
as 15,000 against the American dollar in May at the height of the
political crisis, was no longer much affected by political
issues.
"The market just shrugs off the news of protest after it
managed to withstand the bloody clashes last week," a chief
dealer with a joint venture bank said.
Currency dealers said, however, that trading activities
remained lackluster due to the absence of fresh market-moving
leads ahead of the weekend.
The bullish sentiment on the rupiah was expected to continue
if peaceful students rally did not turn into bloody violence in
the coming days, currency dealers said.
"The rupiah is expected to surge to the 7,000 level if there
is no further violence," a dealer said. (aly)