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

To: allen menglin chen who wrote (1317)	1/21/1998 8:55:00 AM
From: tom	Respond to of 9980

JAKARTA, Jan 21 (Reuters) - Shares of PT Telekomunikasi Indonesia (Telkom) pushed Jakarta's composite index higher on Wednesday as players bought the shares to benefit from differences between the local price and New York and London prices, analysts said. Telkom, which has around a 17 percent weighting on the index, is also listed in New York <TLK.N> and London <TLKMq.L>. It rose 300 rupiah to 4,150 rupiah in Jakarta after touching a high of 4,200 rupiah. "Players, mostly through American brokerage houses, are buying Telkom here to take benefit from the rupiah's falls and the time gap between Jakarta and London and New York," said telecommunications analyst Agung Prabowo of state-owned Danareksa Sekuritas. Prabowo said the time difference enabled players to buy Telkom shares in Jakarta with less dollars because of the rupiah's falls and sell them in New York in the form of ADRs (American Depositary Receipts), which are denominated in dollars. Analysts said the sharp rises in the composite index could be misleading as it was based largely on rises in Telkom and other stocks that were also listed in New York, including Indosat <ISAT.JK> <IIT.N>. "The rise in the index can be misleading as it is pulled up largely by Telkom and to a lesser extend Indosat and the rises in these two firms are mostly based not on fundamentals but on speculative arbitrage trading," another analyst said. The composite index rose 19.08 points, or 4.26 percent, to 467.12 points in late morning trading. In the overall market, losers outnumbered gainers 46 to 39.