JSX projected to remain flat due to wait and see attitude<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) is likely to
\nremain stagnant this week as many fund managers need more time to
\nevaluate their portfolio investments in Indonesia.<\/p>\n
\"The continuing stagnant performance of the JSX over the last
\nthree weeks could be a signal of cyclical weakness rather than of
\ntemporary negative issues,\" the president of PT Inter Pacific
\nSecurities, L.G. Rompas, told The Jakarta Post.<\/p>\n
Many fund managers, according to Rompas, may have settled upon
\nthe end of March as the time to evaluate their portfolio
\nposition.<\/p>\n
He said that other reasons for fund managers' wait-and-see
\nattitude are the forthcoming presidential election in the United
\nStates, the new Indonesian budget year effective today and the
\nanticipation of state-own companies' initial public offering.<\/p>\n
\"Fund managers might have foreseen a possibility of interest
\nrate cuts following the realization of the new budget,\" he said.<\/p>\n
Rompas said that during the first week of April, many public
\ncompanies will publish their financial reports. But stock
\nanalysts will need one or two weeks more to give recommendations
\nbased on their own projections.<\/p>\n
\"Therefore, the market is likely to be stagnant next week,
\nexcept for some significant issues like a cut of the Fed rate
\nthat may emerge within the week,\" he added.<\/p>\n
The JSX share prices closed 0.1 percent lower last week with
\nonly four days of trading. The market was closed on Friday, the
\nlast working day of the 1995\/1996 fiscal year, because the
\ncentral bank, Bank Indonesia, closed clearing facilities.<\/p>\n
The composite index closed the week (on Thursday) at 585.71
\npoints, down from the previous week's close of 586.02 points.<\/p>\n
Total trading<\/p>\n
Total trading value reached Rp 1.1 trillion (US$487 million)
\nwith 463.4 million shares changing hands.<\/p>\n
The prices of 94 stocks remained stagnant, while 80 advanced
\nand 62 declined, as compared to last week when 91 stocks were
\nstagnant, 79 gained and 66 dropped.<\/p>\n
Foreign transactions saw a net selling of Rp 3 billion.<\/p>\n
JSX last week saw a domination of Lippo Group's stocks,
\nincluding Lippo Securities, Lippo Bank, Lippo Pacific Finance,
\nLippo Land Development and Lippo Life Insurance.<\/p>\n
Except for Lippo Bank, dealers were uncertain on the movement
\nof other Lippo shares during the week, such as Lippo Life, Lippo
\nPacific and Lippo Land.<\/p>\n
Lippo Securities, which closed the week 33 percent higher at
\nRp 2,850, was among the top 10 stocks in terms of volume and
\nvalue with 35.6 million shares traded at Rp 87.2 billion.<\/p>\n
Lippo Bank was also actively traded with 9.6 million shares
\nchanging hands at Rp 43.9 billion.<\/p>\n
An analyst said that Lippo Bank became attractive after the
\nbank announced higher than expected profits in the middle of last
\nweek.<\/p>\n
Lippo Bank's reported pretax profits of Rp 137 billion
\nsurpassed the expectation of Rp 130 billion.<\/p>\n
Among the top 10 gainers last week were Kurnia Kapuas UGI
\nwhich was up 57 percent, IKI Kabel up 37 percent, Lippo Pacific
\nFinance 35.7 percent, Lippo Securities 33.7 percent and Ometraco
\nCorporation 30 percent.<\/p>\n
Andayani Megah of the Gajah Tunggal Group was among the top
\nlosers which closed the week 11.8 percent lower at Rp 1,675 due
\nto disappointing net profits. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-projected-to-remain-flat-due-to-wait-and-see-attitude-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}