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Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: r q lad who wrote (189)	2/2/1998 8:17:00 AM
From: Duke	Respond to of 947

FOCUS-Strong Asian markets roar into Year of Tiger (Updates market quotes) By Sarah Davison HONG KONG, Feb 2 (Reuters) - Asian markets roared into the Year of the Tiger as foreign confidence in the region started to return, even though little had changed beyond the passing of another lunar year. ''There are some early signs of confidence coming back or being restored, even though on the fundamentals, nothing has changed,'' said Ambrose Chang, chief investment officer at Daiwa Capital Management in Hong Kong. Markets kicked off a new lunar year with strong gains in stocks and a firm tone in currencies. Volumes soared as long-term funds flooded back into Asian stocks from Europe, leading a second wave of short-term, portfolio investment from the United States. All the region's major stock markets -- Tokyo, Hong Kong, Sydney, Singapore -- gained, as did the smaller markets in Bangkok, Kuala Lumpur, Jakarta and Manila. Currencies were also stronger, firming or consolidating at higher levels as confidence, that most elusive and crucial ingredient for recovery, seemed to reappear. An economic crisis in Asia was blamed for the market pounding during the Year of the Ox, but on Monday that sense of crisis seemed to ebb as confidence surfaced along with trading in this new lunar year. The strength was driven by strong liquidity and the region's traditional tendency to rally on the first day after New Year. Analysts confirmed evidence to support the stronger tone. Indonesia's tough reform package announced last week just before markets closed for Chinese New Year was viewed positively, as was South Korea's debt rescheduling. Last week, Jakarta announced a temporary freeze on corporate debt repayments, reformed its banking sector to shore up domestic liquidity and struck a steering committee of lenders to deal with at least US$66 billion in outstanding corporate debt. Meanwhile, global bankers agreed to far better terms than many had expected on the rollover of an estimated US$24 billion in short-term debt in South Korea for government-guaranteed longer-term loans. The sudden return of fresh money to Asia's battered markets had a profound, and some say exaggerated, effect. ''These markets have been so oversold and everything has been overdone tremendously that when new money comes in, the markets can have this big swing,'' said Chang, adding that he questioned its sustainability. Hong Kong stocks leapt 14.33 percent to 10,578.60; Singapore was up 13.74 percent at 1,432.99; Bangkok closed up 12.02 percent at 554.75; Jakarta stocks gained 14.03 percent to 554.11; Manila was 10.15 percent higher at 2,145.70 and Taipei was up 3.95 percent at 8,405.11 Kuala Lumpur was a relative laggard, up 1.96 percent at 569.51, while Seoul disappointed, sinking 4.18 percent at 543.68 as the market consolidated after weeks of gains. Tokyo was up 0.89 percent to 16,776.82 while the yen was marginally firmer at 126.70 to the U.S. dollar. The powerful showing by regional stocks assisted currencies, but dealers said Thailand's decision to scrap its two-tier exchange trading system also had a big impact. Bangkok's decision on Friday to end the separation between on-shore and off-shore baht currency markets led to an immediate rally in the Thai baht that quickly filtered through the region. The baht was at 51.05 compared to 53.50 on Friday, and there were reports that hedge funds were unwinding long dollar positions. But Asia's fundamental problems were felt more keenly in the region's currencies, with technical support levels for the dollar expected to hold in the Singapore dollar, the Malaysian ringgit, the Indonesian rupiah and the baht. ''Unless these levels are broken, the weak sentiment for the regionals will remain because these are seen as key technical levels. The current reprieve may be short-lived,'' one Singapore-based dealer said. The rupiah was steady with central bank intervention keeping the rate at about 10,500 to the U.S. dollar -- despite the rally in Jakarta stocks. The Singapore dollar reached 1.70 before paring gains to 1.717, the ringgit was steady at about 4.15 and the Philippine peso was firmer at 41 against Friday's close of 42.89. The Korean won was slightly weaker at 1,556.0 on import deals and some dollar shortages at some financial firms.

To: r q lad who wrote (189)	2/2/1998 8:21:00 AM
From: Duke	Read Replies (1) \| Respond to of 947

FOCUS-Jakarta stocks leap, rupiah steady on reform (Updates with market closing details) By Mantik Kusjanto JAKARTA, Feb 2 (Reuters) - Indonesia's markets on Monday gave an initial thumbs-up to the country's economic reform plans, with stocks ending over 14 percent higher and the rupiah steady on the first trading day after a long holiday break. The markets also benefited from a regional uptrend in the post-holiday enthusiasm after Thailand scrapped its two-tier currency system Friday and South Korea's debts were rolled over. Foreign traders returned to the Jakarta stock market on Monday, helping the composite index leap through the 500-point barrier to end the day at 554.11 points, up 14.03 percent. Brokers said foreign and domestic players appeared to have been encouraged by the progress of economic reforms and moves to deal with corporate foreign debt announced last Tuesday, which also held the rupiah steady. Spot rupiah rose to a high of 10,000 from an opening of 10,100/10,400 before easing back to a day's low of 10,700. It later recovered to end in Jakarta at 10,300. Indonesia last week set up an Indonesian Bank Restructuring Agency (IBRA) to rehabilitate unsound banks and also announced guarantees to all depositors and creditors of locally incorporated banks. Currency dealers said central bank intervention between 10,300 and 10,600 in Singapore and Jakarta helped encourage the market's perception that the bank was guarding the rupiah. They said an uptrend in regional currencies had also improved rupiah sentiment. ''I think that the market is assuming the best possible outcome for Indonesia as regards its economic fortunes,'' William Keeling, senior advisor at Dresdner Kelinwort Benson, said. ''However much remains in doubt as the hard task of restructuring and recapitalising the banking sector has yet to begin,'' Keeling told Reuters. ''The market also appears to be supposing that foreign banks will happily restructure Indonesia's corporate debt which may be an optimistic scenario,'' he said. Andre Cita, associate director of PT Bahana Securities, said many foreign investors had returned to the market on Monday. ''A lot of foreigners just see the market is very cheap and the reforms (announced last Tuesday) were a very big step in the right direction. A lot of buying is coming in from foreign houses, at least they dominated buying,'' Cita said. ''The more the commitment you see, the better the market will respond, of course. If you get some short term debt relief that is going to help,'' he said. Former finance minister Radius Prawiro, appointed by Suharto to find ways of dealing with the private sector foreign debt estimated at around $66 billion, said on Saturday he was confident sweeping economic reforms would boost confidence and stabilise the rupiah. Prawiro flew to Tokyo on Saturday to meet bankers and find out which Japanese banks would join a group of lenders to help work out the private corporate debt issue. A number of other European, U.S. and Singapore banks are already members of a Standing Committee to negotiate with a borrowers' Contact Committee being set up in Jakarta on the debt. Prawiro said a framework would have to be worked out, and decided upon, by creditors and debtors, on a voluntary and case-by-case basis, with the cardinal principle that all corporations must meet their obligations. He said those in a position to service their debt must do so, while those that cannot service their debt must regularise their financial arrangements with their creditors. International rating agencies had downgraded Indonesia to junk bond status due to the prolonged currency crisis. ''The sooner we get things sorted out, the sooner we will be able to see the rating services improve their ratings on Indonesia,'' Cita said. ''That is critical for the really big move that can sustain itself for a longer period of time. We need to get that rating back to an investment grade,'' Cita said.