Subdued local market in search of regional leads

JAKARTA (JP): The local financial market was again at loose ends on Wednesday due to the lack of regional guides, with the rupiah dipping slightly to 8,750 against the greenback in listless trading and stock prices inching down 0.2 percent.

Currency dealers said the rupiah was almost unmoved from the opening, trading in a tight range between 8,725 and 8,775, as most offshore operators, especially from Singapore and Hong Kong, were still celebrating the Chinese New Year.

"We hardly saw any movement of the rupiah-dollar today although we had quite a lot of good news, like that from the ADB," a dealer with a local private bank said.

The Asian Development Bank announced on Wednesday it would provide Indonesia with US$1.52 billion in policy-based loans this year to help the country emerge from its economic crisis.

On Tuesday, finance minister Bambang Subianto announced the government's procurement of $4.4 billion in overseas loans, from $6.3 billion needed to compensate for the 1999/2000 budget deficit.

Dealers said the rupiah would remain in the current vicinity for the rest of the week because most operators would only return to their trading desks next week.

Meager trading also hampered the Jakarta Stock Exchange (JSX). Trading volume totaled 95.9 million shares valued at Rp 64.93 billion.

The market's main price index, the JSX Composite Index, closed 0.873 points lower at 397.975.

Losers edged gainers 34 to 32, with 88 unchanged.

Stockbrokers and analysts said lack of regional guides because of the Lunar New Year discouraged local investors from taking a position.

"Today was again very quiet. Most players were reluctant to trade as we did not get any guides from regional markets as most of them were still closed," said Vonny Juwono, an institutional sales broker at Trimegah Securindolestari.

She said most foreign investors usually involved in speculative trading were not active.

Adrian Rusmana, head of research at BNI Securities, said trading was likely to remain slow this week but would start to pick up again next week.

"I expect a technical rebound early next week," Adrian said.

Stockbrokers said banking stocks were the focus of the day's trading amid anticipation of more bank closures later this month.

Topping the most actively traded stocks was Bank Internasional Indonesia, which closed unchanged at Rp 250 on 20.4 million shares traded following the announcement of an 8-for-1 rights issue.

Market leader PT Telkom, the state-owned domestic telecommunications operator which accounts for 17 percent of local market capitalization, was not actively traded, but its fall dragged the index down into negative territory.

Telkom was down Rp 50 at Rp 2,850 on 1.37 million shares, while international call operator PT Indosat rose Rp 125 to close at Rp 11,850.

Cigarettemaker PT Gudang Garam increased Rp 100 to Rp 11,700, but rival PT HM Sampoerna remained stagnant at Rp 5,900.

Diversified mining concern PT Aneka Tambang was up Rp 25 to close at Rp 1,500 and tin mining firm Rp Tambang Timah also strengthened by Rp 25 to Rp 4,850. (rid)