Foreign fund inflow boosts JSX index<\/p>\n
JAKARTA (JP): Signs of a better Indonesian economy brought an
\ninflux of foreign funds into the Jakarta Stock Exchange (JSX)
\nlast week and propelled its composite index up by 19.4 points
\n(four percent) to 506.12 from the week's opening of 486.72.<\/p>\n
A new deregulation package will likely be announced this
\nmonth. It is anticipated that it will be broad-based and will
\ninclude the reduction of tariff and non-tariff barriers as well
\nas measures to improve the efficiency of the local distribution
\nof goods. The announcement of the lower inflation rate of 0.42
\npercent for November, compared to 0.64 percent in October, or a
\n7.85 percent year-to-date rate, was more positive news for the
\nmarket.<\/p>\n
Sentiment remained bullish as the index crossed the
\npsychological 500-point barrier to hit the week's high of 502.62
\non Thursday.<\/p>\n
Two telecommunication companies, Telkom and Indosat, were
\nactively traded on Wall Street, which pushed the local price for
\nTelKom to Rp 2,775 on Friday, the highest level since it was
\nlisted.<\/p>\n
Citra Marga Nusaphala Persada (CMNP) had strong bids following
\nthe issuance of US$175 million in floating rate notes; the fund
\nis expected to be used to refinance its revenue sharing bonds.
\nThis will increase the company's earnings per share next year.
\nRumors on private placement in the Malaysian market at a price of
\nRp 2,300 also boosted the CMNP share price by Rp 400 (21.33
\npercent) over the week.<\/p>\n
Despite worries of poor earnings growth, forestry-related
\nstocks, like Barito Pacific, Indah Kiat and Tjiwi Kimia, were
\namong the most actively traded counters.<\/p>\n
Meanwhile, concerns about Lippo Bank's solvency and liquidity
\nissues started to diminish as the bank's financial performance
\nwas considered sound. Lippo Bank shares increased by 21.8 percent
\nover the past two weeks.<\/p>\n
The market is anticipated to move further up this week to
\nabove 510. Active trading is expected because the majority of
\ninvestors will soon close for the Christmas and New Year holiday.
\nSectors which are expected to be actively traded include
\ncigarettes, telecommunications, cement, and pulp and paper for
\nspeculative investment.<\/p>\n
Local investors started to profit last week, although they
\nalso focused on speculative property and forestry stocks. Active
\ncounters included Telkom, CMNP, Gadjah Tunggal, Barito Pacific,
\nIndah Kiat, BDNI, Lippo Bank, Enseval, Lippo Land, Tjiwi Kimia,
\nDharmala Intiland, Duta Anggada and Darya-Varia.<\/p>\n
Foreign-triggered buying was mainly seen on blue-chip counters
\nlike Telkom, Gadjah Tunggal, Indosat, Lippo Bank, Mayora Indah,
\nCiputra Development, Astra International, Semen Gresik and Lippo
\nLand.<\/p>\n
Average daily turnover on the regular board increased to 57.4
\nmillion shares worth Rp 143.4 billion (US$62.4 million) from 39.7
\nmillion shares worth Rp 94.9 billion in the previous week. Total
\nturnover for the week also increased to 409.8 million shares
\nvalued at Rp 1,120.4 billion from 301.6 million shares valued at
\nRp 897.2 billion in the previous week.<\/p>\n
Last week's best performers were Modern Photo (up Rp 1,500),
\nGudang Garam (up Rp 800), Indorama (up Rp 775), Mulia Industrindo
\n(up Rp 650) and Aneka Kimia Raya (up Rp 600). The biggest losers
\nwere Sorini (down Rp 500), Ometraco Corp. (down Rp 375), Sucaco,
\nMulti Bintang and HM Sampoerna (each down Rp 300). Gainers
\noutnumbered losers by 69 to 66, while 31 counters remained the
\nsame.<\/p>\n
-- Sigma Batara<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-fund-inflow-boosts-jsx-index-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }