Dow drops below 11,000 as dollar rebounds

Dow falls after China raises key interest rate; energy and materials sectors fall 

 A stronger dollar and a surprise interest rate hike in China that may slow that country's economy helped push stocks sharply lower Tuesday.

The Dow Jones industrial average fell below 11,000 for the first time in a little more than a week, reversing a streak that had pushed the index up nearly 7 percent for the year. It was the largest single-day drop in the market since early August.

The Dow Jones industrial average fell 165.07, or 1.5 percent, to 10,978.62. Standard & Poor's 500 index fell 18.81, or 1.6 percent, to 1,165.90, while the Nasdaq composite index fell 43.71, or 1.8 percent, to 2,436.95.

The dollar rose 1.7 percent against a basket of currencies, while gold fell 2 percent.

The strengthening dollar led to a broad selloff of commodities. That dragged down stocks of companies in the energy and materials sectors of the Standard and Poor's 500, which were both down more than 2 percent.

"The dollar rebounded pretty significantly today and that's one of the primary drivers of the market," said John Pandtle, who is a co-manager of the Eagle Large Cap Value fund.

For weeks, traders have been anticipating that the Federal Reserve will expand a program to buy bonds in hopes of encouraging spending. That has led many investors to buy stocks despite questions about the strength of the economic recovery. (source : Yahoo finance)

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RUPSLB Setujui CPIN Stock Split 1:5

"Investor yang hadir 72 persen dari 100 persen. Mereka menyetujui usulan perseroan," ungkap Seketaris Perusahaan CPIN Hadianto Kartika kepada wartawan dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB), di Hotel Ritz Carlton Jakarta, Selasa (19/10/2010).

Menurutnya, pelaksanaan akhir pemecahan nilai nominal saham (cum stock split) ini akan dilakukan di pertengahan Desember 2010 sambil menunggu persetujuan dari Kemenhuk HAM. "Saat ini jumlah saham yang beredar 3,284 miliar. Dengan adanya rencana ini, maka jumlah saham kami akan menjadi 16,42 miliar lembar saham," tukasnya.

Selain itu, lanjutnya, RUPSLB ini juga menyetujui rencana share buy back saham senilai Rp50 miliar. Dana ini berasal dari perolehan laba bersih di Juni 2010 sejumlah Rp941,78 miliar. Saham yang diperoleh tersebut akan ditarik kembali dengan cara pengurangan modal ditempatkan dan disetor perseroan.( source : Okezone)

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Peringkat Bank Mandiri Naik ke AAA

Fitch Ratings menaikan peringkat nasional jangka panjang (national long term rating) PT PT Bank Mandiri Tbk (BMRI) menjadi AAA(idn) dari sebelumnya AA+(idn).

Selain itu, Fitch juga menegaskan peringkat obligasi jangka panjang perseroan yang berdenominasi rupiah dan valas di BB+, obligasi jangka pendek berdenominasi rupiah B, individual rating C/D. "Ouutlook dari peringkat tersebut adalah stabil   (source : Okezone)