I don't think Unkie Al was to blame, but part of the stampede was attributed to someone with a similar job.
FOCUS-Indonesian markets in melt-down mode
biz.yahoo.com
JAKARTA, Jan 8 (Reuters) - Indonesian markets were in melt-down mode on Thursday, with the stock market slumping more than 18 percent at one stage and the rupiah collapsing close to 10,000 to the dollar.
Traders and economic analysts said there was a complete lack of confidence in the market, amid widespread doubts about the government's ability to overcome the financial crisis.
They also cited unsubstantiated rumours that President Suharto would not seek re-election in March.
Government officials were not immediately available for comment on the rumours. Brokers said rumours that Suharto was unwilling to stand for re-election were sweeping the market, but added there seemed little basis for the talk.
The stock market index plunged 18.5 percent to 321.29 points on the rumours, brokers said. By 0732 GMT it had recovered to show a 13.53 percent fall to 340.91.
The rupiah had fallen 18 percent on the day to 9,900 by noon and dealers said the 10,000 barrier was not far off. But by 0732 GMT the currency was trading at 9,150/9,450.
The fall in the rupiah was sparked by comments by U.S. Deputy Treasury Secretary Lawrence Summers that Indonesia needed to show its commitment to reforms agreed with the International Monetary Fund (IMF) under a bail-out plan drawn up in October.
On Tuesday, Indonesia released a 1998/99 budget projecting four percent economic growth, inflation at nine percent, an exchange rate of 4,000 rupiah to the dollar and an increase in tax revenue during the period. It was badly received by the markets and analysts labelled the plan as unrealistic.
''There is a complete lack of confidence,'' said Tom Soulsby, the head of research for ANZ Securities in Jakarta....." (more in story linked) |
