JSX index plunges on heavy sales<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nplunged on heavy selling of bank stocks, with the Composite Index
\nlosing 12.62 points to close at 669.99.<\/p>\n
Large selling of Bank Negara Indonesia and Bank Internasional
\nIndonesia dampened the market's mood.<\/p>\n
Turnover was 210.6 million shares worth 411.7 billion rupiah.<\/p>\n
BNI was down Rp 100 at Rp 1,350 rupiah, BII lost Rp 125 to Rp
\n1,650, BDNI was unchanged at Rp 2,400, Lippo Bank was down Rp 125
\nat Rp 2,525 and Bank Niaga was down Rp 200 rupiah at Rp 7,200.<\/p>\n
Sampoerna fell Rp 425 to Rp 11,575 amid negative reaction to
\nPutera Sampoerna's buying a stake in Indofood, while Gudang Garam
\nfell 175 rupiah to 10,200 rupiah.<\/p>\n
Indofood was unchanged at Rp 5,775 while Indocement rose 25
\nrupiah to 3,400 rupiah.<\/p>\n
Securities analysts said most bank stocks lost ground as
\ninvestors reacted negatively to newspaper reports that the
\ncentral bank would limit banks' credits to a maximum of 18
\npercent this year.<\/p>\n
\"It is an over-reaction because every body knows the central
\nbank's credit target is between 17 and 18 percent a per annum,\"
\none analyst said.<\/p>\n
But another analyst said investors were concerned not only
\nbecause of the central bank's low credit target but also because
\nof its stricter control in monitoring loans.<\/p>\n
Banks should report their annual lending projections to the
\ncentral bank before the start of each calender year. The central
\nbank will then ask the banks to revise their lending targets down
\nif it feels they are too high<\/p>\n
Indofood booked a significant gain in early trade before
\neasing on profit taking.<\/p>\n
Newspaper reports that Putera Sampoerna had bought around six
\npercent stake in Indofood pushed up the company's share price.<\/p>\n
Putera, the chairman of cigarette maker H.M. Sampoerna bought
\na significant amount of auto maker Astra's shares last year.
\n(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-index-plunges-on-heavy-sales-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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