Strengthening U.S. Dollar

Stocks in Wall Street slumped following the strengthening U.S. dollar that makes investors cut their investment portfolios are more risky.

Financial sector stocks also slumped after the most influential banking analyst, Meredith Whitney cut earnings projections for Goldman Sachs Group Inc. and Morgan Stanley.

U.S. dollar index is an indicator of performance over a set dollar currency rose nearly 1%, or nearly the highest in the last 3 months.

The strengthening U.S. dollar and stock indexes lately highly correlated. In recent months, the shares rose sharply enough at the time the U.S. dollar slumped. Investors took advantage of the currency is not expensive to buy assets with higher yields.

"The dollar began to haunt the market a bit here," said Terry Morris, Senior Vice President National Penn Investors Trust Company, as quoted by Reuters on Friday (18/12/2009).

In trading Thursday (17/12/2009), the Dow Jones industrial average (DJIA) closed lower to 132.86 points (1.27%) to as low as 10,308.26. Index Standard & Poor's 500 also down 13.10 points (1.18%) to the level of 1096.08 and the Nasdaq slumped 26.86 points (1.22%) to the level of 2180.05.

Market sentiment also got negative after FedEx Corp. issued financial statements below analyst expectations, causing its shares slumped 6.1%.

Financials Index S & P noted weakened 1.8%. Citigroup shares fell 7.3% after the offering of shares and bonds did not attract many investors and the price is lower than expectations. It also sparked the U.S. Ministry of Finance to postpone plans to sell shares of Citigroup until 12 months into the future.

Substantial trade volume to 1.72 billion, above average last year of 1.49 billion. On the Nasdaq, transactions reached 1.94 billion, below average last year of 2.28 billion.

Gold and Oil Prices Corrected

As the strengthening U.S. dollar, oil and gold prices have corrected. Both commodities are slowly falling from its highest point.

In London trading, light sweet crude January delivery fell 1.19 dollars to U.S. $ 71.48 per barrel. While Brent oil February delivery fell 1.62 dollars to U.S. $ 72.67 per barrel.

Meanwhile, gold prices in the spot market is stable at the level recorded U.S. $ 1100 per ounce after earlier tumbling as much as 2%.

Bakrie Life Begin to Pay The Customer's Interest

Management of PT Asuransi Jiwa Bakrie (Bakrie Life) began to make interest payments Diamond Investa customers with a new interest rate according to the agreement scheme for 9.5%.

Payment of interest as the new rate is paid to customers for the month of November 2009 which had been due this December. Previous months Investa Diamond customer interest paid with 13% interest rate.

Decreasing a net profit of JPT Bakri & Brothers Tbk recorded 95.42%

Decreasing a net profit of JPT Bakri & Brothers Tbk recorded 95.42% until the third quarter in 2009. The decreasing mainly is caused by falling revenues and increased operating expenses.


This was conveyed in the financial statements of companies, on Monday (7/12/2009).

Until the third quarter-2009, BNBR recorded revenues of 5.329 trillion Rupiah, down 16.55% from the same period in 2008 amounting to 6.386 trillion Rupiah. Cost of revenues fell 23.39% to 2.657 trillion Rupiah from the previous 3.692 trillion Rupiah.

Decrease of cost of revenues to the company only recorded a decline in gross profit for thin 0.81% to 2.672 trillion Rupiah from the previous 2.694 trillion Rupiah.

However, operating expenses increased 23.89% to 2.157 Rupiah trillion from the previous 1.741 trillion Rupiah. This makes operating profit fell 45.92% to USD 514.854 billion from USD 952.155 billion previously.

The Company also recorded other burdens of 75.233 billion Rupiah mainly due to losses on sale of shares amounting to 376.34 billion Rupiah and USD interest expense N270, 392 billion.

In fact, in the same period last year, was recorded BNBR other income of 125.713 billion Rupiah.

This makes a net profit reached 40.486 billion Rupiah from the previous USD 885.739 billion. Earnings per share was to be only 0.43 Rupiah from the previous USD 13.36.

BNBR assets also declined 7.15% to $ 26.483 trillion from the previous 28.524 trillion Rupiah. Liabilities decreased 23.39% to $ 15.704 trillion from 20.5 trillion Rupiah previously. Equities still rose 56.6% to 6.59 trillion Rupiah from 4.208 trillion Rupiah previously.

BP Migas Revokes Suspension DMO Incentive Holiday

BP Migas revokes the provision of incentives in the form of delay Domestic Market Obligation (DMO) holiday which has been given to the operator Cepu Block, Mobil Cepu Limited, which is a subsidiary ExxonMobil Oil Indonesia.

According to the BP Migas chief R Priyono, is due to the removal of ExxonMobil can not meet the commitment to accelerate production in Cepu Block.

"The letter was sent to Exxon last week. It is doubtful that we provide because they have retreated from a commitment," said Priyono through a hearing with Commission VII, at the Parliament Building, Senayan, Jakarta, Tuesday (1/12/2009 ).

According to him, before MCL get DMO holiday incentive to delay production at the peak of 165,000 bpd. The delay was granted because the MCL asked the government to speed up production on the field before Banyu Urip from 2010 to December 2008.

But because the target is too late to be accelerated in August 2009, then lifted the stay of BP Migas the DMO holiday.

"So DMO holiday was in effect since August 2009," said Priyono.

DMO holiday provisions are included in production sharing contracts between the government and contractor cooperation contract (KKKS). In that provision, given the right KKKS get holiday or exemption DMO deposit liabilities to market their products in the country for 60 months.

In accordance with the rules of the DMO, KKKS shall deposit 25% of oil production a part of the domestic market at a price of only 25% of the ICP.