Jakarta stock prices rise 2.4%<\/p>\n
JAKARTA (JP): Stocks prices on the Jakarta Stock Exchange
\n(JSX) rose 2.40 percent yesterday on foreign selective buying and
\nlocal \"bargain hunting\".<\/p>\n
\"We didn't see a lot of buy orders when the market was
\nreopened because investors were waiting to see what was going to
\nhappen in court,\" a dealer with a foreign brokerage said.<\/p>\n
\"The market began to be active late in the morning session as
\nan announcement about the court hearing's delay spread to the
\nmarket,\" the dealer added.<\/p>\n
Investor confidence seems to have also improved, partly due
\nto a delayed court case that had been filed by the ousted chief
\nof the Indonesian Democratic Party (PDI), Megawati Soekarnoputri,
\ndealers said.<\/p>\n
Several dealers contacted by The Jakarta Post said that,
\ndespite a more stable political situation, the market was driven
\nby local investors not by foreigners.<\/p>\n
One dealer said that foreign-based brokerages including Credit
\nLyonnais, Peregrine Sewu and ING Baring were net buyers. Other
\nbrokerages like Merrill Lynch and Morgan Grenfell remained net
\nsellers.<\/p>\n
Meanwhile, most local brokerages, including state-owned
\nDanareksa, were net buyers.<\/p>\n
The JSX composite index soared 12.91 points to close at
\n548.93, with 113 million shares valued at Rp 272 billion changing
\nhands.<\/p>\n
Gainers outnumbered losers 85 to 19, while 31 other stocks saw
\nno change.<\/p>\n
A dealer with a Japanese brokerage pointed out that yesterday's
\nincrease was due mainly to active buying on index movers,
\nparticularly cigarette maker Gudang Garam, HM Sampoerna and
\nBimantara.<\/p>\n
Gudang Garam edged up Rp 200 at Rp 8,650 with 1.6 million
\nshares changing hands while its rival HM Sampoerna rebounded Rp
\n1,700 to close at Rp 23,500 with 526,000 shares traded.<\/p>\n
\"Local investors should have realized that today was the right
\ntime to buy blue chips stocks,\" an analyst said.<\/p>\n
It's quite normal to see local investors active because they
\nknow more about the political situation here, Sigma Batara's
\nresearch director, Fajar Sutardi, told the Post.<\/p>\n
Fajar said that investors should have taken the view: \"Why
\nshould we buy second-liners or third-liners if the blue chips are
\nvery cheap.\"<\/p>\n
He also noted that as far as fundamentals are concerned,
\nconsumer goods and infrastructure stocks like Gudang Garam,
\nSampoerna and Telkom are less sensitive to political volatility.<\/p>\n
\"No wonder those stocks rebounded easily,\" he added.<\/p>\n
He said that the market sentiment was positive as even the
\nmost politically sensitive stocks -- Bimantara and Citra Marga --
\nwent up.<\/p>\n
Conglomerate Bimantara Citra rose Rp 125 to Rp 2,250. It was
\nalso recorded as the most active stock with 8.2 million shares
\nchanging hands.<\/p>\n
Another politically sensitive stock, Citra Marga, rose Rp 125
\nto Rp 3,300 with a trading volume of 915,000 shares.<\/p>\n
Astra International increased Rp 75 to Rp 2,275 with a trading
\nvolume of 879,000 shares.<\/p>\n
Telkom gained Rp 50 to close at Rp 3,275 with 3.3 million
\nshares traded.<\/p>\n
Other stocks on the rise were BII, Barito Pacific, Indosat,
\nTambang Timah and Semen Gresik.<\/p>\n
Meanwhile, the rupiah firmed against the U.S. dollar in heavy
\ntrading here as money market players started dumping the American
\ngreenback<\/p>\n
The Indonesian currency gained six points in afternoon
\ntrading, rising to Rp 2,346,50, forex dealers said.<\/p>\n
\"The money market players' confidence in the Indonesian
\ncurrency has improved significantly,\" one dealer said.<\/p>\n
In Singapore, the rupiah rose two points to Rp 2,352 in early
\ntrading.<\/p>\n
The Indonesian rupiah plunged nearly 30 points to a two-year
\nlow of Rp 2,360 against the U.S. dollar on Monday following the
\nweekend riots. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-stock-prices-rise-24-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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