Jakarta stocks expected to be mixed this week<\/p>\n
JAKARTA (JP): Trading activities on the Jakarta Stock Exchange
\n(JSX) are expected to be mixed this week with profit taking by
\nlocal investors, securities analysts and brokers said.<\/p>\n
They said foreign interest would be weak this week due to the
\nthree-day working holiday in Hong Kong.<\/p>\n
"With the Hong Kong bourse closed next week, most foreign
\ninvestors will be absent, but this will not necessarily mean a
\nweaker market," an analyst with a joint venture securities house
\nsaid.<\/p>\n
The Hong Kong stock market will be closed for three days --
\nMonday to Wednesday -- to mark the transfer of sovereignty to
\nChina.<\/p>\n
"But some secondary stocks might continue gaining on
\nspeculative interest," said Adnan Tan, sales director of Morgan
\nGrenfell Asian Indonesia.<\/p>\n
He said the absence of foreign investors this week did not
\nnecessarily mean weak trading activities in the local market as
\nlocal investors had been strong over the past six months,
\nespecially on the second and third line stocks.<\/p>\n
"The support of local investors is extremely good," Adnan told
\nThe Jakarta Post over the weekend.<\/p>\n
Another analyst from a joint venture securities house agreed
\nand said a stronger and increasingly active role by domestic
\ninvestors over the past six months could compensate the absence
\nof foreign investors.<\/p>\n
Although the Hong Kong stock market is closed for three days,
\nforeign funds from the United States and some European countries
\nwould continue venturing the JSX due to its strong economic
\nfundamentals, Adnan said.<\/p>\n
DBS Securities Indonesia said the macroeconomic fundamentals
\nin Indonesia remained favorable, with inflation rates remaining
\nin check.<\/p>\n
DBS Securities said the World Bank Report "Sustaining High
\nGrowth with Equity" had undoubtedly showed the country's strong
\neconomic performance.<\/p>\n
"Such indicators have strongly suggested that Indonesia is one
\nof the fascinating markets," one analyst said.<\/p>\n
The JSX recorded a new composite index high of 719.638 points
\nlast Monday largely because of heavy purchases by local
\ninvestors, brokers said.<\/p>\n
The JSX composite index climbed 4.61 points to close at 716.83
\npoints last week from 712.22 the previous week.<\/p>\n
Total average daily volume rose 18 percent to 373.2 million
\nshares changing hand last week from 314.78 million shares the
\nprevious week.<\/p>\n
Total average daily transaction value also increased by 4
\npercent to Rp 642.48 billion (US$267.7 million) last week from Rp
\n613.68 billion the previous week.<\/p>\n
Analysts said the possible weakening transaction activities
\nthis week did not necessarily push the index down.<\/p>\n
"We have even projected the JSX composite index will go higher
\nin the coming weeks," said a senior dealer with Asian Development
\nSecurities.<\/p>\n
"We expect this will reach 750 in the next few weeks," she
\nsaid.<\/p>\n
But most brokers said the index would hover around 711 points
\nto 720 points this week.<\/p>\n
Blue chip stocks closed mixed last week.<\/p>\n
Telkom fell Rp 25 to close at Rp 3,975 while Indosat was down
\nRp 375 to Rp 7,175.<\/p>\n
Cigarette manufacturer HM Sampoerna was down Rp 1,075 to close
\nat Rp 8,925 following expectations of lower sales, while
\ncompetitor Gudang Garam was up Rp 25 at Rp 10,000.<\/p>\n
Bank Negara Indonesia lost Rp 100 to close at Rp 1,500 while
\nBank Internasional Indonesia went down Rp 75 to close at Rp
\n2,075. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-stocks-expected-to-be-mixed-this-week-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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