Subdued local market in search of regional leads

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)