Dormant trading seen at JSX due to lack of stimulus<\/p>\n
JAKARTA (JP): Sluggish trading is expected on the Jakarta
\nStock Exchange (JSX) because there are no fresh incentives
\nexpected to be able to attract investors, equity analysts said
\nover the weekend.<\/p>\n
They said the bullish trend in the sales of blue chip shares
\nhad declined by the end of trading last week and was expected to
\nfurther weaken this week due to lack of trading incentives, such
\nas positive reports on corporate activities and government
\neconomic policy.<\/p>\n
\"Economic fundamentals remain good, but that is not enough.
\nThe market needs some good news to maintain its bullish trend,\"
\none of the analysts said.<\/p>\n
He was optimistic, however, there would be no major pullout
\nfrom the market either, because it would receive no significant
\nnegative news.<\/p>\n
He acknowledged that the setback to the resolution of the Bank
\nBali scandal involving a number of former senior government
\nofficials would have a negative influence on the market. \"But the
\nimpact will not be that big,\" he added.<\/p>\n
Most of the analysts were in agreement that this week's
\ntrading would be mostly dictated by the volatility of the global
\nstock exchanges, especially Taiwan's.<\/p>\n
\"The market will continue to be influenced by volatile
\noverseas stock exchanges. It will not be exciting next week,\" he
\nsaid over the week end.<\/p>\n
The financial market in Taiwan is expected to go into free
\nfall due to investor uncertainty following the election of
\nproindependence figure Chen Shui-bian as president.<\/p>\n
The analysts believed that the Taiwan uncertainty would also
\naffect regional markets, which for several weeks had been
\ninconsistent due to different perceptions of the U.S. economy's
\nfuture.<\/p>\n
An analyst from a foreign securities firm agreed that the U.S.
\nmarket would still have a significant impact on the regional
\nmarkets, including the JSX.<\/p>\n
Yuzar Nazaruddin from Ficor Securities expected blue chip
\nshares to bring up the Composite Index this week, despite the
\nrelatively gloomy outlook.<\/p>\n
He agreed the effects of the volatile regional markets could
\nstill be seen on the JSX, but the positive response toward the
\nCapital Market Supervisory Agency's (Bapepam) recent move to
\nprotect the investing public would still be able trigger the
\ntrading of some good shares.<\/p>\n
Bapepam last week issued new regulations, one of which
\nrequires that a listed company have at least one independent
\ndirector.<\/p>\n
An independent director usually has a much greater commitment
\nto working for the company, and not only for its majority
\nshareholders.<\/p>\n
The JSX Composite Index surged 8.7 percent last week to close
\nat 596.18 points, up from 548.55 the previous week. Whereas the
\ndaily average transaction value increased to Rp 992.52 billion,
\ncompared to Rp 703.11 billion the previous week.<\/p>\n
The JSX Composite Index decreased about one percent to close
\nat 590.85 points, down from 596.18 points the previous week.<\/p>\n
Daily average transaction values dropped to Rp 612.09 billion
\nlast week, compared to Rp 992.52 billion the previous week.<\/p>\n
The daily average turnover was also down to 425.2 million
\nshares, from 697.6 million shares the previous week.<\/p>\n
Last week's top gainers were PT Indo Citra Finance, whose
\nshares jumped 35.71 percent, PT Sarasa Nugraha by 33.33 percent
\nand PT Concord Benefit Enterprises by 27.27 percent.<\/p>\n
The week's big losers were PT Van Der Horst Indonesia, whose
\nshares fell by 51.79 percent, PT Primarindo Asia Infrastructure
\nand PT Keramika Indonesia (both down by 25 percent).<\/p>\n
The top brokerage firms by transaction value were PT Bhakti
\nInvestama with Rp 262.96 billion in transactions, PT Vickers
\nBallas Tamara with Rp 229.05 billion and PT GK Goh Ometraco with
\nRp 211.16 billion.<\/p>\n
The rupiah closed the week weaker at 7,435 against the U.S.
\ndollar, compared to 7,380 the previous week. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dormant-trading-seen-at-jsx-due-to-lack-of-stimulus-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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