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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Jack Clarke who wrote (1307)	1/21/1998 6:21:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 9980

<< So why did the Indonesian stock market end up +4%? >> Jack, I have been wondering about that myself. Perhaps the Indonesians are looking for any place to dump their Rupiahs that will fall slower than the currency. John

To: Jack Clarke who wrote (1307)	1/21/1998 7:18:00 AM
From: tom	Read Replies (2) \| Respond to of 9980

The reason for the market's strength is that people are arbitraging the ADRs of PT Telkom and PT Indosat. They sell them in NY at a premium and then buy back the local stock in Jakarta for US$ settlement. As these two stocks comprise 1/3 of the total market this buying pushes the whole index up. This game cannot go on for long. Check out how the ADRs trade this afternoon (TLK.N and IIT.N). Also worth watching is the rupiah's reaction to President Suharto's speech this evening 8PM (Jakrta time, 1PM GMT).