WEAKENING CURRENCY, STOCK PRICES, AND INVESTMENT

Thursday, June 24, 2010

READING CYCLE WAYS and STOCK MARKET CURRENCY
In these decades the currency markets and some markets in shares and securities is very unstable prices and level of transaction security, plus more with several local and international market factors that increasingly can not be predicted by experts and masters of international business market.

A number of banks in some countries are also experiencing the no instability in the exchange rate and interest rate calculation, the increasing number of customers as well as decrease the passive investors in their capital invested in several companies is to determine the amount of increase and decrease the value of a currency exchange rate and the value of buying and selling shares a few giant companies in some countries that can categorize a global company that covers all sectors of business and the value of their stock trading.

Recently the market in back with the emergence of some value to the company's stock price does not match that should (commonly called in terms of stock market participants by name or stock ruse fried) as well as with the emergence of several executives in companies that do not pay business taxes and the State in the legal minimum tax and trade transactions which led to the onset of symptoms the confidence of investors and stock market players to invest their capital in business and commerce sectors as well as business in buying and selling securities, stocks and indices in the local stock market and international stock markets.

The reduced number of points as dowjons decreased in the range of 107.55 points at the opening today, the decline of the rupiah against foreign currencies at the rate USD 9025 IDR / USD, decreasing investor in several local giant companies like bakrie group that issued the securities as well as reduced international investors into the Indonesian stock market.

Impairment level of market confidence in some companies that ultimately lead to turmoil in the markets that are difficult to predict by the investors who ultimately makes a very sharp decline of confidence. Behavior like this is very reasonable when viewed from the standpoint of business and science of trading that takes into account profit and loss in an investment. Have become an obligation for market analysts to give info as best they can, this could be made in reference to the investors, brokers and banks that serve as controlling the market in a certain amount in the cycle trade.

Perhaps now is the right word for the title is a bit tragic Page CORRPORATE, because of the many number of companies to include in the buying and selling in the stock market lately a lot of very large decrease once. Stock prices of seven issuers are very famous with the title THE BROTHERS SAVEN on falling. Shares of PT Energi Mega Persada TBK biggest cut to about 19.33%, to around Rp 96 rupiah share. shares Page ELAND DEVELOPMENT RESOURCES TBK and TBK followed by decreased in the range of 18.87% and 16.2%.

As a result of this sharp decline in stock trading could hit earth OUTO rejection. Because the stock price could touch the level of Rp. 1630 per share. The total transaction value of seven bakrie it reached 1.62 trillion, the figure is equivalent to 35.22% of the total value of transactions in Indonesia Stock Exchange yesterday reached 4.6 trillion.

Not without cause surely if the Bakrie Group shares declined. Some of the Indonesian capital market observers say that among the factors that cause a decline in stock prices of several companies bakrie group is the action that triggers the issuance of new shares by some companies bakrie group itself. During the first quarter of 2010 this group of issuers Bakrie was getting the amount of Rp 10.4 trillion rights issue through action.


INVESTMENT INFO
At least half of the investment in Indonesia in 2011 came from private. This conclusion from the figures contained in the Draft Budget and Revenue Expenditure (Budget) for the year 2011. Year 2011, the value of the investment required USD 2243.8 trillion. According to Coordinating Minister for Economy, Hatta Rajasa, the government is only able to cover a maximum of 17% of the total investment required.

Are private investors, foreign and domestic investment is expected to patch up this country needs. The Government does not expect business investment needs to close all numbers, but only partially. It's not that easy to realized expectations. Investments referred to in this context rather than placing the money in financial assets such as stocks or bonds. But the direct investment activities, commonly referred to foreign direct investment (FDI).

Hope is not easily realized because of the potential investors aware of their strong bargaining position. This country needs to accelerate the rotation of the wheels of their economies. That is why, most investors put a high price before invest. They asked for tax exemption. It is probable, the government will not be able to grant all requests tax holiday. How else could be burdensome tax exemption budget.

At times like this, is there that can still attract the FDI investors? Clearly there is. Indonesia should be able to improve the investment climate. For example, make the rules more consistent. Maybe it sounds cliche advice because it preached a thousand times. But in fact, still a lot of homework to be completed by the managers of this country, whether in the executive branch-legislative-judicial bodies or in regional centers.

Recent examples are disputes about oil palm plantations in forest land that is supposed to be. The story happened in North Sumatra had the same themes as the story of forest annexation by coal miners in East Kalimantan, in 2009 three-four years ago. Initially the rule of law collide, then there is letting. And after the plantations or mines that run, newly issued central government. Without improvement of business climate, should not be surprised if investors always put a high price.

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