JSX share prices continue losing ground<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\ndropped for the third consecutive day yesterday, with the
\ncomposite index falling 2.5 points to close at 675.436.<\/p>\n
Securities analysts said Bank Indonesia's move to cut the
\ninterest rates of its promissory notes failed to boost market
\nconfidence.<\/p>\n
Several popular shares gained ground in the morning, pushing
\nup the price index before the close of the first trading session,
\nanalysts said.<\/p>\n
\"But the selling pressure hit the market again in the
\nafternoon when foreign investors made a significant sale order,\"
\none dealer said.<\/p>\n
Total turnover was 350.93 million shares changing hand on the
\nregular market valued at Rp 604.84 billion (US$233.52 million)
\nyesterday.<\/p>\n
Decliners led advancers by 70 to 47 with 69 stocks remaining
\nunchanged.<\/p>\n
Yesterday's fall was the third in the last three days. On
\nThursday, the index lost 3.13 percent after falling 1.9 percent
\nthe previous day on a sharp increase in the interest rates of the
\ncentral bank's Bank Indonesia's Certificates (SBIs).<\/p>\n
Bank Indonesia has raised the interest rate of its SBIs by
\nseveral percentage points in the last three weeks to stabilize
\nthe rupiah.<\/p>\n
The rise led to a drastic increase in the interbank loans
\nrates, which subsequently caused an increase in deposit rates.<\/p>\n
\"I think investors remain uncertain about the direction of
\ninterest rates. That's why there is still panic selling,\" Rizal
\nPrasetyo, Jardine Fleming Nusantara's vice president told The
\nJakarta Post.<\/p>\n
Dealers said Minister of Finance Mar'ie Muhammad's surprise
\nvisit to the exchange Thursday to calm down investors did not
\nhelp much.<\/p>\n
\"The visit has calmed investors but it has not lifted market
\nsentiment yet,\" a dealer with Asian Development Securities said.<\/p>\n
But vice president of Mashil Jaya Securities Tjandra Kartika
\nattributed market decline not only to interest rates but also to
\nthe new regulations on margin trading, to the summer holiday of
\nmost foreign fund managers and the payments for the new rights
\nissues over the next three weeks.<\/p>\n
He said investors should at least spend about Rp 7 trillion
\n($2.70 billion) in rights issue payments over the next four
\nweeks.<\/p>\n
\"They have to sell their shares to generate funds for the
\npayment of rights shares of other companies,\" he said.<\/p>\n
Most blue chips lost yesterday with Bank Internasional
\nIndonesia closing Rp 25 to Rp 1,575. Bank Negara Indonesia rose
\nby 75 to Rp 1,425, Bank Dagang Negara Indonesia (BDNI) down by Rp
\n25 to Rp 1,100 and Lippo Bank down Rp 50 to Rp 2,575.<\/p>\n
Indosat slipped Rp 175 rupiah to Rp 7,425 while Telkom was
\nunchanged at 3,850 rupiah.<\/p>\n
Dealers said that cement stocks were the main target for
\nselling by investors with Semen Gresik falling by Rp 225 to Rp
\n3,800, while Semen Cibinong by Rp 50 to Rp 3,500 and Indocement
\nby Rp 125 to Rp 3,875. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-share-prices-continue-losing-ground-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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