DJ
13-Dec-2010
JAKARTA (Dow Jones)--Indonesia's core inflation may accelerate in 2011 and 2012, Bank Indonesia said Monday, raising the possibility of a policy rate increase in the near term.
"The high (inflation) pressure during 2010 was mostly explained by volatile food inflation and administered prices, while core inflation has been controlled. Going forward, there is potential increase in core inflation in (the) year 2011 and 2012," the central bank said on its website without providing reasons for the expected increase.
Core consumer prices, which exclude volatile prices for items like foodstuff, rose by 4.31% in November from a year earlier, speeding up from 4.19% in October.
Meanwhile, inflation stood at 6.33% in November, above the central bank's target range of between 4% and 6%, and accelerating from October's 5.67%.
Earlier in the day, Bank Indonesia's Deputy Governor Hartadi Sarwono said that December inflation will likely reach 6.5%, adding pressure on the authorities to act to rein in prices.
Bank Indonesia has kept its key policy rate steady at 6.5% since August 2009. While many central banks in neighboring countries have moved to raise rates to curb inflation, Bank Indonesia has kept its rate unchanged due to worries it may attract more capital inflows, which will complicate its liquidity management.
Several analysts said that the central bank will likely choose to take administrative measures to absorb liquidity and prevent sudden reversal of the inflows before raising its policy rate.
Sarwono earlier in the day said "now is not yet the time to increase interest rates."
Analysts are divided on the timing of the first rate move, but some forecast it to be as early as the first quarter of next year.
-By Andreas Ismar, Dow Jones Newswires; 62 21 39831277; andreasismar.sandiwan@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=wq9Gt7V4VL0%2BVxnnum8Zjw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
Monday, December 13, 2010
Luxury cars: Status symbols selling like hot cakes in Indonesia
Burhanuddin Abe, Contributor, Jakarta | Mon, 12/13/2010 12:07 PM | Supplement
A | A | A |
http://www.thejakartapost.com/news/2010/12/13/luxury-cars-status-symbols-selling-hot-cakes.html
A luxury car is an obvious status symbol. It’s not surprising that many billionaires, celebrities or successful sportsman or sportswoman, have the hobby of collecting luxury cars.
One would find, not one, but several luxury cars, parked in the driveway of their luxury homes.
One such example is David Beckham, who has seven luxury cars in his garage. With earnings of over US$200,000 per week the collection of this flamboyant soccer player is complete: BMW, Ferrari, Lamborghini, Aston Martin, Porsche, Hummer as well as Bentley.
This is not a new hobby for the husband of Victoria “Posh” Beckham. After becoming a soccer star he started to purchase luxury cars. His first Bentley costing £170,000 or about Rp 2.5 billion was left behind in England when he moved to Real Madrid.
In Madrid the English soccer star was seen driving an open-top Aston Martin Vantage V8. In Manchester he often drives his Rolls Royce Phantom when going out with his wife.
After moving to the United States Beckham became busy collecting more luxury cars, such as the Rolls Royce Phantom Drophead Coupe costing the equivalent of Rp 2.8 billion, Lamborghini Gallardo at $206,400 (Rp 1.9 billion), Hummer H2 at $103,200, Mercedes S500 and Bentley Arnage purchased at $312,080.
Here in Indonesia there are many collectors of luxury cars although they prefer this not to be exposed to the public. Basically it is about prestige or social status.
According to the owner of The Jakarta Consulting Group, Alfonsus Budi Susanto, it is easy to manipulate this prestige or social status issue in a cosmopolitan and pluralistic community in major cities. One can project a high profile or low profile image and each has its own consequences.
A car is the most conspicuous status symbol because since the Mataram kingdom horse-drawn carriages were already a prestige thing. Previously consumers had to be satisfied with purchasing luxury cars that were ex high-level foreign conference, ex embassy and so forth, but today they can buy such luxury cars directly.
Moreover now there are many importers of luxury cars whose products are selling like hot cakes.
So don’t be surprised by the increasing number of imported luxury cars as Indonesia is one promising market.
In line with the improved economy completely built up (CBU) cars are again emerging.
Although the segment is not too large, the market holds good prospects because there are not many players here selling cars at over Rp 700 million.
President and CEO of Mercedes-Benz Indonesia (MBI) Rudi Borgenheimer told the media recently that he estimated the sale of luxury cars in Indonesia could reach 5,400 units this year.
His statement was made during the launching of three new models of Mercedes-Benz, namely C300 Avantgarde, E300 Avantgarde and E36 AMG.
Rudi said that car sales in Indonesia were improving due to the conducive economy reflected by the stable interest rate — 6.5 percent — and a contained inflation level, so MBI was optimistic its sales would go up to 3,700 units in 2010, which is an increase of 28.2 percent over last year’s total sales of 2,884 units.
Meanwhile, another German car manufacturer, BMW Indonesia announced that the sales for the January-September 2010 period has exceeded the 2009 figure, totaling 929 units far above the 2009 figure of 901 units.
“We are quite happy with our achievement and are optimistic about our sales until the end of the year. The first nine months of this year have been a busy time for us with the launching of 10 new variants. The BMW X1 and the latest BMW 5 series have experienced a great demand, likewise BMW Gran Turismo,” said Ramesh Divyanathan, president director of BMW Indonesia.
According to Ramesh, BMW is currently focusing on sustainable long term growth and at the same time boosting energy savings as well as reduction of CO2 gas emission in each of its cars.
“We will also present variants with BMW Advanced Diesel technology and introduce EfficientDynamics technology in each of the units sold in Indonesia,” added Ramesh.
The improved economy is not only advantageous to Mercedes-Benz and BMW. Other brands are also enjoying increased sales with many luxury brands being seen on the streets of Jakarta and a number of other major cities in Indonesia, such as Audi, Volvo, Bentley, Jaguar, Porsche, Lamborghini, Hummer and even Rolls-Royce.
A | A | A |
http://www.thejakartapost.com/news/2010/12/13/luxury-cars-status-symbols-selling-hot-cakes.html
A luxury car is an obvious status symbol. It’s not surprising that many billionaires, celebrities or successful sportsman or sportswoman, have the hobby of collecting luxury cars.
One would find, not one, but several luxury cars, parked in the driveway of their luxury homes.
One such example is David Beckham, who has seven luxury cars in his garage. With earnings of over US$200,000 per week the collection of this flamboyant soccer player is complete: BMW, Ferrari, Lamborghini, Aston Martin, Porsche, Hummer as well as Bentley.
This is not a new hobby for the husband of Victoria “Posh” Beckham. After becoming a soccer star he started to purchase luxury cars. His first Bentley costing £170,000 or about Rp 2.5 billion was left behind in England when he moved to Real Madrid.
In Madrid the English soccer star was seen driving an open-top Aston Martin Vantage V8. In Manchester he often drives his Rolls Royce Phantom when going out with his wife.
After moving to the United States Beckham became busy collecting more luxury cars, such as the Rolls Royce Phantom Drophead Coupe costing the equivalent of Rp 2.8 billion, Lamborghini Gallardo at $206,400 (Rp 1.9 billion), Hummer H2 at $103,200, Mercedes S500 and Bentley Arnage purchased at $312,080.
Here in Indonesia there are many collectors of luxury cars although they prefer this not to be exposed to the public. Basically it is about prestige or social status.
According to the owner of The Jakarta Consulting Group, Alfonsus Budi Susanto, it is easy to manipulate this prestige or social status issue in a cosmopolitan and pluralistic community in major cities. One can project a high profile or low profile image and each has its own consequences.
A car is the most conspicuous status symbol because since the Mataram kingdom horse-drawn carriages were already a prestige thing. Previously consumers had to be satisfied with purchasing luxury cars that were ex high-level foreign conference, ex embassy and so forth, but today they can buy such luxury cars directly.
Moreover now there are many importers of luxury cars whose products are selling like hot cakes.
So don’t be surprised by the increasing number of imported luxury cars as Indonesia is one promising market.
In line with the improved economy completely built up (CBU) cars are again emerging.
Although the segment is not too large, the market holds good prospects because there are not many players here selling cars at over Rp 700 million.
President and CEO of Mercedes-Benz Indonesia (MBI) Rudi Borgenheimer told the media recently that he estimated the sale of luxury cars in Indonesia could reach 5,400 units this year.
His statement was made during the launching of three new models of Mercedes-Benz, namely C300 Avantgarde, E300 Avantgarde and E36 AMG.
Rudi said that car sales in Indonesia were improving due to the conducive economy reflected by the stable interest rate — 6.5 percent — and a contained inflation level, so MBI was optimistic its sales would go up to 3,700 units in 2010, which is an increase of 28.2 percent over last year’s total sales of 2,884 units.
Meanwhile, another German car manufacturer, BMW Indonesia announced that the sales for the January-September 2010 period has exceeded the 2009 figure, totaling 929 units far above the 2009 figure of 901 units.
“We are quite happy with our achievement and are optimistic about our sales until the end of the year. The first nine months of this year have been a busy time for us with the launching of 10 new variants. The BMW X1 and the latest BMW 5 series have experienced a great demand, likewise BMW Gran Turismo,” said Ramesh Divyanathan, president director of BMW Indonesia.
According to Ramesh, BMW is currently focusing on sustainable long term growth and at the same time boosting energy savings as well as reduction of CO2 gas emission in each of its cars.
“We will also present variants with BMW Advanced Diesel technology and introduce EfficientDynamics technology in each of the units sold in Indonesia,” added Ramesh.
The improved economy is not only advantageous to Mercedes-Benz and BMW. Other brands are also enjoying increased sales with many luxury brands being seen on the streets of Jakarta and a number of other major cities in Indonesia, such as Audi, Volvo, Bentley, Jaguar, Porsche, Lamborghini, Hummer and even Rolls-Royce.
Cruise ship docking bay ‘vital to boosting tourist numbers’
Desy Nurhayati, The Jakarta Post, Denpasar | Mon, 12/13/2010 11:00 AM | Bali
A | A | A |
The Karangasem administration demanded more priority be given to the construction of an international cruise ship docking bay at Tanah Ampo port in the village of Manggis to increase the number of visitors to Bali.
Regent Wayan Geredeg said the project would cost around US$104 million and hoped that the port would commence operation in 2012.
When realized, the port would become one of the largest cruise ship docks in Southeast Asia.
“We need money from the central government to complete the port,” Geredeg told President Susilo Bambang Yudhoyono during a recent visit by the President to the regency.
He said Bali had enormous potential to attract international cruise ships to visit, and that the development of the cruise ship dock was expected to increase the number of foreign tourist arrivals to Bali via Karangasem regency.
Karangasem features on many cruise ship itineraries, but due to limited facilities, all cruise ships currently anchor at Padang Bai port while passengers have to take smaller boats to Karangasem.
Between 2001 and 2007, 58 of the 99 cruise ships visiting Indonesia came to Bali, with 37 docking at Karangasem.
“Recently we had to reject ships from Florida because our port was not completed,” Geredeg said, adding that he expected 150 cruise ships a year to call on the port if construction was finished by 2012.
“If every ship brings 2,000 tourists, and every person spends at least $100, this would signify huge additional revenue for Bali.”
As of the end of 2009, the construction of the port had cost Rp 76.3 billion, Rp 56.5 billion provided by the Transportation Ministry, Rp 2.7 billion from the regency budget and Rp 7.1 billion from provincial coffers.
http://www.thejakartapost.com/news/2010/12/13/cruise-ship-docking-bay-%E2%80%98vital-boosting-tourist-numbers%E2%80%99.html
A | A | A |
The Karangasem administration demanded more priority be given to the construction of an international cruise ship docking bay at Tanah Ampo port in the village of Manggis to increase the number of visitors to Bali.
Regent Wayan Geredeg said the project would cost around US$104 million and hoped that the port would commence operation in 2012.
When realized, the port would become one of the largest cruise ship docks in Southeast Asia.
“We need money from the central government to complete the port,” Geredeg told President Susilo Bambang Yudhoyono during a recent visit by the President to the regency.
He said Bali had enormous potential to attract international cruise ships to visit, and that the development of the cruise ship dock was expected to increase the number of foreign tourist arrivals to Bali via Karangasem regency.
Karangasem features on many cruise ship itineraries, but due to limited facilities, all cruise ships currently anchor at Padang Bai port while passengers have to take smaller boats to Karangasem.
Between 2001 and 2007, 58 of the 99 cruise ships visiting Indonesia came to Bali, with 37 docking at Karangasem.
“Recently we had to reject ships from Florida because our port was not completed,” Geredeg said, adding that he expected 150 cruise ships a year to call on the port if construction was finished by 2012.
“If every ship brings 2,000 tourists, and every person spends at least $100, this would signify huge additional revenue for Bali.”
As of the end of 2009, the construction of the port had cost Rp 76.3 billion, Rp 56.5 billion provided by the Transportation Ministry, Rp 2.7 billion from the regency budget and Rp 7.1 billion from provincial coffers.
http://www.thejakartapost.com/news/2010/12/13/cruise-ship-docking-bay-%E2%80%98vital-boosting-tourist-numbers%E2%80%99.html
Australian footy star who 'lived life to the full' dies in Bali scooter smash
Aja Styles
December 10, 2010
Friends have poured out their grief online after Mitch Gillam was killed in a Bali scooter smash.
Friends have poured out their grief online after Mitch Gillam was killed in a Bali scooter smash.
A 20-year-old West Australian man who died after a suspected scooter accident in Bali yesterday has been remembered as a "little legend" by his mourning family.
Mitch Gillam and a friend were apparently involved in a motorcycle crash while on a group trip with mates from Perth and Kalgoorlie, in WA's Goldfields.
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Mr Gillam's father, Ken, said his son lived life to the full.
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The Gillam family has described Mitch as a 'fun-loving' bloke who was loved by all.
"He's just got such a massive network of sport and school mates and everyone loved the bloke," he said. "He's a little legend."
Early reports suggest the other man was found unconscious with a broken leg and was treated in hospital. He had since been discharged but had little memory of the accident, Mr Gillam snr said.
Mitch Gillam had grown up in the South-West WA town of Kojonup and had gone to school at Aquinas College in Perth before moving to Kalgoorlie to take on an electrical apprentiship at one of the mines.
Mitch Gillam (centre) relaxes with friends in a photo from his Myspace page.
Mitch Gillam (centre) relaxes with friends in a photo from his Myspace page.
"He really loved his family and his friends. We were everything to him and he was everything to us," his aunt Cyndy Gillam said.
"He could do tricks with golf balls, ride wheelchairs down stairs. He was just fun-loving."
Mr Gillam's older sister Tarli, 23, is enlisted in the army and has previously been deployed on a tour of duty to Iraq. She is currently stationed in Darwin, but was flying back to Perth today to be with her family.
"Her parents have been night after night sick with worry about how she's going to get through this, and he goes only on a holiday to Bali with a few friends and you know...," Mrs Gillam said.
"It's just heartbreaking for the family to have to go through this."
Mitch Gillam was a prominent footballer at Railways Football Club in Kalgoorlie, and was also a well-known cricketer in the mining town.
Railways president Garry Giles said Mr Gillam was a bright young midfielder who won runner-up in the fairest and best awards during the 2010 season after joining the club last year.
Kalgoorlie Mines Rovers Football Club President Peter Hunter said he had hoped to recruit him from they opposition side, and described him as a "really nice bloke".
Aquinas College Dean of Development Peter Robertson said he was a wonderful young man.
"Mitch was one of those kids around the school that you couldn't help but know," Mr Robertson said.
"He was terrific, friendly guy and he made the most of every opportunity at school - he won a number of academic awards, took part in service group programs and through sport, which was one of Mitch's great passions."
Tributes flow on Facebook
Mr Gillam's friends and teammates immediately hit Facebook to pay tribute to the young man, with words of sadness and support for the family flowing online.
Emily Thompson posted this morning "Mitch ill love you forever, they better have TABs up there for you."
Friend Brett Glaskin’s status updates on the social networking site expressed his disbelief at Mitch's death: "so shattered... such a tragedy to happen to a mate like you Mitch ... I know you will ravage up there mate .. see you again one day mate ill never forget you xx."
Another post read: "Gillam ... So many great memories ,, I can't think of a better bloke than you .... I can't believe that a guy with such a big heart has been taken from us ... Thanks for making everything so hilarious, you were one of a kind mate .. Gonna miss you so much xx".
The last status update that Mitch Gillam posted on his page on November 24 said simply "7 sleeps" – an indication of his excitement at the upcoming Bali trip.
The sadness was echoed in the words of other posters. Kylie Nunweek wrote: "My thoughts go out to the friends and family of Mitch Gillam. Such a tragic accident on what should have been a great adventure."
Adam Henley wrote: "Wishing the gillam family, friends and all the boys the very best. See you soon enough mate. Rip mitch"
And Sharne Christie added: "Mitch gillam you were a great person and everyone loved you rip xxxx"
The Department of Foreign Affairs has revealed very little about the accident, saying the circumstances of the man's death were unclear and "will be a matter for local authorities to determine".
"Consular officials from the Australian Consulate-General in Bali are providing consular assistance to the man's friends in Bali," a DFAT spokesperson said.
The Department was assisting the man's family in Australia.
- with Lucy Rickard
Sunday, December 12, 2010
Subsidy Ban to Force Rise in Indonesia Fuel Imports
Faisal Maliki Baskoro | December 13, 2010
Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Indonesia. Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Under the plan, subsidized Premium fuel would be off limits to private car owners in Jakarta from Jan.1 and the whole of Java and Bali from July 1. Drivers would have to buy higher-octane Pertamax fuel at Rp 6,500 a liter, almost 50 percent more expensive than Premium.
Pertamina spokesman Mochamad Harun said importing fuel would be essential.
“Our data showed in May that consumption of Pertamax was at 1,200 kiloliters per day,” he said. “It’s at 2,600 kiloliters per day now and it will go up if the government goes ahead with its plan. We will have to import high-octane fuel.’’
He said Pertamax use has risen rapidly this year because of increased awareness about the fuel’s efficiency and doubts raised about the quality of Premium this summer.
The government has long planned to phase out subsidies altogether by 2014 and has been considering options for the first set of subsidy cuts since the middle of this year. Mochamad, however, said Pertamina did not have any numbers on the possible increase of imports under the government’s plans as it had not made any preliminary calculations.
With Java alone consuming more than 20,000 kiloliters of Premium every day, the amount of Pertamax needed could be up to 500 percent more than the amount now being produced.
Mochamad said most Pertamax was produced at Pertamina’s Balongan refinery in West Java, which has a production capacity of 325,000 barrels per day.
He said Pertamina plans to double the capacity there by 2016. The government had been inviting investors to fund the expansion, which is estimated to cost $5.2 billion.
The government is scheduled to meet with the House of Representatives (DPR) today to discuss the subsidy ban plans, and the House must vote on the plans before the session ends on Friday.
Meanwhile, signs of Premium scarcity are already popping up. Long lines of people queuing to buy Premium at several filling stations have been reported in the past few days, including in Cilegon, Banten province, and Gorontalo in Sulawesi.
The biggest fears are for filling stations in Greater Jakarta, where the ban will hit first, as only just over half of filling stations sell Pertamax, although Pertamina was quick to reassure the public on Sunday that there would be enough fuel.
“There are around 700 gas stations in Greater Jakarta, of which around 400 are equipped with Pertamax. We also have an adequate number of stations equipped with Pertamax in big cities and that is sufficient,” Mochamad said. Pertamina has around 5,000 gas stations nationwide, with 35 percent selling Pertamax.
“Building gas stations would not require a lot of investment. We can share the cost with gas station owners. It will be as expensive as building a new refinery,” he said.
The figures do not add up for energy research institute ReforMiner, however, which on Sunday accused the government of being unprepared.
“It is going to be hard to limit subsidized fuel consumption from Jan. 1 because not all necessary facilities have been prepared,” institute director Komaidi said.
Latif Adam of the Indonesian Institute of Sciences (LIPI) shared the view that the government was “not yet ready.”
http://www.thejakartaglobe.com/news/subsidy-ban-to-force-rise-in-indonesia-fuel-imports/411352
Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Indonesia. Questions are mounting over the preparation for planned cuts in fuel subsidies starting in January after state oil and gas company Pertamina said on Sunday the plan would force it to import massive quantities of high-octane fuel next year to meet demand.
Under the plan, subsidized Premium fuel would be off limits to private car owners in Jakarta from Jan.1 and the whole of Java and Bali from July 1. Drivers would have to buy higher-octane Pertamax fuel at Rp 6,500 a liter, almost 50 percent more expensive than Premium.
Pertamina spokesman Mochamad Harun said importing fuel would be essential.
“Our data showed in May that consumption of Pertamax was at 1,200 kiloliters per day,” he said. “It’s at 2,600 kiloliters per day now and it will go up if the government goes ahead with its plan. We will have to import high-octane fuel.’’
He said Pertamax use has risen rapidly this year because of increased awareness about the fuel’s efficiency and doubts raised about the quality of Premium this summer.
The government has long planned to phase out subsidies altogether by 2014 and has been considering options for the first set of subsidy cuts since the middle of this year. Mochamad, however, said Pertamina did not have any numbers on the possible increase of imports under the government’s plans as it had not made any preliminary calculations.
With Java alone consuming more than 20,000 kiloliters of Premium every day, the amount of Pertamax needed could be up to 500 percent more than the amount now being produced.
Mochamad said most Pertamax was produced at Pertamina’s Balongan refinery in West Java, which has a production capacity of 325,000 barrels per day.
He said Pertamina plans to double the capacity there by 2016. The government had been inviting investors to fund the expansion, which is estimated to cost $5.2 billion.
The government is scheduled to meet with the House of Representatives (DPR) today to discuss the subsidy ban plans, and the House must vote on the plans before the session ends on Friday.
Meanwhile, signs of Premium scarcity are already popping up. Long lines of people queuing to buy Premium at several filling stations have been reported in the past few days, including in Cilegon, Banten province, and Gorontalo in Sulawesi.
The biggest fears are for filling stations in Greater Jakarta, where the ban will hit first, as only just over half of filling stations sell Pertamax, although Pertamina was quick to reassure the public on Sunday that there would be enough fuel.
“There are around 700 gas stations in Greater Jakarta, of which around 400 are equipped with Pertamax. We also have an adequate number of stations equipped with Pertamax in big cities and that is sufficient,” Mochamad said. Pertamina has around 5,000 gas stations nationwide, with 35 percent selling Pertamax.
“Building gas stations would not require a lot of investment. We can share the cost with gas station owners. It will be as expensive as building a new refinery,” he said.
The figures do not add up for energy research institute ReforMiner, however, which on Sunday accused the government of being unprepared.
“It is going to be hard to limit subsidized fuel consumption from Jan. 1 because not all necessary facilities have been prepared,” institute director Komaidi said.
Latif Adam of the Indonesian Institute of Sciences (LIPI) shared the view that the government was “not yet ready.”
http://www.thejakartaglobe.com/news/subsidy-ban-to-force-rise-in-indonesia-fuel-imports/411352
DJ Australia Shares End Up 0.2%; Major Banks Rise On Benign Reforms
13-Dec-2010
SYDNEY (Dow Jones)--Australia's share market reacted positively to Friday's strength on Wall Street, hitting a fresh four-week high before profit taking trimmed gains Monday.
Banks generated most of the strength as investors were relieved by the benign nature of regulatory reforms announced by the Australian government over the weekend.
The benchmark S&P/ASX 200 closed up 11.2 points, or 0.2%, at 4757.1 after hitting 4775.7.
Last week's break above 4740.0 left minimal resistance until the Nov. 5 peak at 4815.0, a break of which could clear the way for a run toward the inverse head and shoulders target at 5025.0, according to Dow Jones Newswires technical analysis.
Share trading volumes were light as the market started to thin before year end.
However, the mood among traders remained bullish after recent gains on Wall Street.
"I think this will be a pivotal week and we could see some good upside," said IG Markets Institutional Dealer Chris Weston. "If fund managers are going to chase alpha, it's going to be this week because liquidity will dry up altogether next week."
According to Goldman Sachs, the Australian share market has risen 25 of the past 30 years in the period from mid-December to Jan. 10, with an average gain of 3.1% in that period.
Wall Street's S&P 500 rose 0.6% on Friday on the back of strong economic data.
"The Australian share market continues to track U.S. gains on improving economic data," said UBS head of sales George Kanaan. "I think markets will creep higher in the next two weeks."
Among financials, major banks rose 1.0%-1.6% after Australia's Labor government moved to empower a key regulator to prosecute collusion on price signalling on home lending rates but stopped short of offering any punitive measures that might directly harm big banks.
"There's definitely been some buying interest in major banks post the reforms, which were always likely to be more of a slap on the wrist," said RBS head of sales Justin Gallagher. "There's a level of comfort because even though this was reasonably well flagged, we've now got some comfort that the government isn't going to do anything silly."
Gallagher said major banks could rise a further 5%-10% in coming weeks.
The rise in the major banks came at the expense of the regional banks, with Bank of Queensland falling 3.5% to A$10.97 and Bendigo Bank falling 3.3% to A$9.91.
Elsewhere, resources set fresh multiweek highs despite concern about a 5.1% rise in China's consumer price index in November from a year earlier, the fastest rise in two years.
China lifted its banks' reserve requirement but left its key interest rates unchanged.
"The strength in miners is a bit surprising," said MF Global senior institutional trader Anthony Anderson. "You would think there's a rate rise to come in China."
BHP Billiton retested its Nov. 8 peak of A$45.74 before closing flat at A$45.44.
Westfield Retail Trust fell 3.3% to A$2.66 after its debut Monday following its split from Westfield Group, which fell 2.0% to A$9.60.
"Funds prefer Westfield Group without the trust," said Anderson. "They see more growth potential in Westfield Group."
-By David Rogers, Dow Jones Newswires: 61-2-8272-4693: david.rogers1@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=wq9Gt7V4VL0%2BVxnnum8Zjw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
SYDNEY (Dow Jones)--Australia's share market reacted positively to Friday's strength on Wall Street, hitting a fresh four-week high before profit taking trimmed gains Monday.
Banks generated most of the strength as investors were relieved by the benign nature of regulatory reforms announced by the Australian government over the weekend.
The benchmark S&P/ASX 200 closed up 11.2 points, or 0.2%, at 4757.1 after hitting 4775.7.
Last week's break above 4740.0 left minimal resistance until the Nov. 5 peak at 4815.0, a break of which could clear the way for a run toward the inverse head and shoulders target at 5025.0, according to Dow Jones Newswires technical analysis.
Share trading volumes were light as the market started to thin before year end.
However, the mood among traders remained bullish after recent gains on Wall Street.
"I think this will be a pivotal week and we could see some good upside," said IG Markets Institutional Dealer Chris Weston. "If fund managers are going to chase alpha, it's going to be this week because liquidity will dry up altogether next week."
According to Goldman Sachs, the Australian share market has risen 25 of the past 30 years in the period from mid-December to Jan. 10, with an average gain of 3.1% in that period.
Wall Street's S&P 500 rose 0.6% on Friday on the back of strong economic data.
"The Australian share market continues to track U.S. gains on improving economic data," said UBS head of sales George Kanaan. "I think markets will creep higher in the next two weeks."
Among financials, major banks rose 1.0%-1.6% after Australia's Labor government moved to empower a key regulator to prosecute collusion on price signalling on home lending rates but stopped short of offering any punitive measures that might directly harm big banks.
"There's definitely been some buying interest in major banks post the reforms, which were always likely to be more of a slap on the wrist," said RBS head of sales Justin Gallagher. "There's a level of comfort because even though this was reasonably well flagged, we've now got some comfort that the government isn't going to do anything silly."
Gallagher said major banks could rise a further 5%-10% in coming weeks.
The rise in the major banks came at the expense of the regional banks, with Bank of Queensland falling 3.5% to A$10.97 and Bendigo Bank falling 3.3% to A$9.91.
Elsewhere, resources set fresh multiweek highs despite concern about a 5.1% rise in China's consumer price index in November from a year earlier, the fastest rise in two years.
China lifted its banks' reserve requirement but left its key interest rates unchanged.
"The strength in miners is a bit surprising," said MF Global senior institutional trader Anthony Anderson. "You would think there's a rate rise to come in China."
BHP Billiton retested its Nov. 8 peak of A$45.74 before closing flat at A$45.44.
Westfield Retail Trust fell 3.3% to A$2.66 after its debut Monday following its split from Westfield Group, which fell 2.0% to A$9.60.
"Funds prefer Westfield Group without the trust," said Anderson. "They see more growth potential in Westfield Group."
-By David Rogers, Dow Jones Newswires: 61-2-8272-4693: david.rogers1@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=wq9Gt7V4VL0%2BVxnnum8Zjw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
Bali Fully Booked For Christmas and New Year's Holidays
Editor's Note:
As I have been predicting for months Bali is fully booked for the Christmas and New Year's Holidays.
My first clue that this would happen was when our © Bali Luxury Villas were booked a solid three months in advance for the holidays.
There are going to be a lot of disappointed travelers this season especially those in places such as Jakarta, Singapore and Hong Kong who expect to make normal last-minute arrangements for Bali.
First they will be very fortunate if they obtain a flight and secondly they will be shocked by much higher prices than last year.
Along with these record tourist arrivals I also predict a record amount of real estate sales and substantially higher prices for high demand properties such as luxury villas.
There will be especially rapid increases on beachfront properties. in particular the ones that are still affordable in southern Bali such as our Paradise Beach Estates starting as little as $159,000.
So give the gift that keeps on giving buy or lease a Bali property and get in what I expect to be the largest increase in Bali real estate prices the shortest time period in history
_____________________________________________________________________________________
Made Arya Kencana | December 12, 2010
http://www.thejakartaglobe.com/news/bali-fully-booked-for-christmas-and-new-years-holidays/411340
Denpasar. Hotels in Bali are fully booked for the Christmas and New Year’s holidays, the head of the island’s hotel association said on Sunday, while police said there had been no indication of an increased threat of terrorist attack.
“From December 20 onward, hotel rooms in Bali are fully booked,” said Perry Markus, head of the Bali branch of the Indonesian Hotel and Restaurant Association. He added that this was a marked improvement over last year’s numbers, when occupancy averaged 70 percent during the holidays.
Addressing security concerns, Bali Police Chief Insp. Gen. Hadiatmoko said on Sunday that 12,000 personnel would be deployed to secure the island throughout the Christmas and New Year’s celebrations.
“Although there is no indication of a possible terrorist attack, we will remain vigilant,” he said.
Two major terrorist attacks have damaged Bali’s reputation as a tourist paradise in the last decade. Suicide bombings in Kuta in October 2002 killed 202 people, many of them foreign nationals.
In October 2005, three coordinated bomb blasts in Jimbaran and Kuta killed 26 people and injured more than 100.
“I can say that security conditions in Bali at this time are under control,” Hadiatmoko said.
He pointed out that his officers had solved the high-profile murder of a teenage student in Denpasar last month and the recent theft of sacred Hindu statues known as pratima .
But Brig. Gen. Surya Dharma, a former chief of the National Police’s elite Densus 88 counterterrorism unit, said separately that the recent success in apprehending suspected terrorists in Aceh and Medan did not mean the police should let down their guard.
Police on Friday arrested Abu Tholut in Central Java. He had been one of the country’s most wanted suspected terrorists.
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