JSX recovers from speculation<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) rebounded on
\nspeculation by domestic investors at the beginning of last week.
\nThe rise was boosted by solid performance on Wall Street and the
\ngovernment's strong intervention to support the rupiah.<\/p>\n
The rally, however, burned out towards the end of the week as
\nforeign investors remained the net sellers.<\/p>\n
The JSX Composite Index closed the week 4.21 points (+0.95%)
\nhigher to 446.08. The market's sentiment was not so strong with the
\nindex having dipped below the 450 support level.<\/p>\n
The rebound lacked enough steam to push the market well above
\nthe previous support level. Foreign investors were skeptical ahead
\nof the U.S. interest rate hike at the end of the month.<\/p>\n
In the near term, share prices are likely to be flat as the
\nmarket is expected to take its direction sideways.<\/p>\n
Cigarette producer, HM Sampoerna, reported better than
\nexpected results with net profits rising by 130 percent. However,
\nthe counter's price did not move much.<\/p>\n
The JSX market is already one of the cheapest. However,
\nwhether the market can maintain its course will largely depend on
\nlocal buying which would limit the downside.<\/p>\n
Local players reacted more positively, as the government ruled
\nout devaluation and defended the rupiah. Local bargain hunters came
\nin, snapping-up stocks which have become very much undervalued.<\/p>\n
Stocks which were actively traded by domestic investors last
\nweek included Indosat, Astra Int'l, Barito, Gudang Garam,
\nSampoerna, Indah Kiat and Indofood.<\/p>\n
Demand<\/p>\n
Foreign players were the net sellers during the week, putting
\na lit on rising share prices. However, there was a particular
\nbuying interest on Barito Pacific Timber, speculated to benefit
\nfrom the earthquake in Japan, which would stir a rise in demand for
\nplywood.<\/p>\n
Other stocks which were actively traded by foreigners included
\nIndosat, Astra Int'l, Barito, Indah Kiat, Tjiwi Kimia, BDNI, Gudang
\nGaram, Sampoerna, Indofood and Indocement.<\/p>\n
Average daily turnover on the regular board decreased to 13.51
\nmillion shares worth Rp 47.16 billion (US$21.40 million) last week
\nfrom 22.41 million shares worth Rp 75.53 billion in the previous
\nweek.<\/p>\n
Last week's total turnover decreased to 110.14 million shares
\nvalued at Rp 414.00 billion from 221.88 million shares valued at Rp
\n834.07 billion in the previous week.<\/p>\n
Some of last week's best performers were Gudang Garam (up Rp
\n1,200), Sampoerna (up Rp 875), Bunas Finance (up Rp 650), Barito
\n(up Rp 450) and Ugahari (up Rp 400).<\/p>\n
The biggest losers were Steady Safe (down Rp 850), Surya Toto
\n(down Rp 700), Tira Austenite, Mulia Industrindo, Modern Photo
\n(down Rp 500 each) and Sepatu Bata (down Rp 450).<\/p>\n
Losers outnumbered gainers by 69 to 42, while 35 remained
\nunchanged.<\/p>\n
-- Sigma Batara<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jsx-recovers-from-speculation-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }