Indonesia... Better.... Hopeful
JAKARTA, Jan 14 (Reuters) - Jakarta stocks surged over five percent on
Wednesday and the composite index ended above 400 points on hopes that
broad-based reforms were on the anvil following discussions between Indonesia and the IMF, brokers and traders said.
Brokers said investors anticipated positive results from meetings between Indonesian and IMF officials as they bought stocks accross the board, brokers and traders said.
''Some investors expected good results from the IMF meetings which should be announced on Thursday,'' one chief dealer said.
Investor confidence in stocks improved following the rise of rupiah against the dollar, brokers said. At around 0945 GMT, the rupiah was trading at 6,900/7,400 tothe dollar, compared with 8,000/8,200 to the dollar at the opening.
''The strong gains in most Asian markets also strengthened buying sentiment,'' a broker said, adding that both local and foreign investors were active.
Players were also speculating on the announcement on Thursday of significant economic reforms following a meeting between Indonesian and IMF officials.
The arrival of IMF Managing Director Michel Camdessus in Jakarta on Wednesday also played a role in raising optimism in Indonesia's battered financial markets.
''I am very hopeful that tomorrow, after meeting with the president (Suharto), I will be able to announce a very solid agreement,'' Camdessus told reporters on arrival.
A combination of the strengthening rupiah, regional gains and IMF reform hopes were powerful enough to sustain the market in a bullish tone after almost a week of gains, a dealer said.
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