JSX share prices expected to be mixed this week<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nare expected to be mixed this week as fears of a rise in U.S.
\ninterest rates linger.<\/p>\n
Securities analysts said the outlook would remain poor with
\nstocks just consolidating.<\/p>\n
\"There will be some bargain hunting on selective stocks,
\nsaving the index from a further plunge,\" one analyst said.<\/p>\n
The rupiah is pegged not only to dollar but also to other
\nmajor foreign currencies. The rise in the U.S. interest rate is,
\nhowever, more sensitive to the local stock trading rather than
\nthe interest hike made by local banks<\/p>\n
\"Interest rate fears, combined with the poor performance of
\nbanking stocks and the impact of the central bank's low lending
\ntarget will still be the central issues,\" he said.<\/p>\n
DBS Securities Indonesia's research department predicted
\nshares would remain weak on interest hike fears.<\/p>\n
The U.S. Federal Reserve's steering committee meets on March
\n25 to decide whether to raise rates.<\/p>\n
\"The decision made by the U.S. Fed will have direct
\nimplications for the local interest scenario,\" DBS said.<\/p>\n
One Dongsuh Kolibindo Securities analyst said the Indonesian
\nmarket was not ready to avoid the negative effects of the U.S.
\ninterest rate fluctuation.<\/p>\n
\"The local market is still dominated by foreign investors and
\nwe have to accept the reality,\" he said.<\/p>\n
In February, the rise in the U.S. interests rate was higher
\nthan expected.<\/p>\n
\"Analysts expect there will be another 50 basis point increase
\nthis month. With such an increase, the equity market will be
\nweak,\" he said.<\/p>\n
In addition to interest rate fears, unfavorable government
\npolicy like Bank Indonesia's low lending target would probably
\ncontinue to dampen buying segment, he said.<\/p>\n
He said that many investors were also in a wait and see
\nstance, waiting for financial reports. \"This will also affect the
\nmarket.\"<\/p>\n
The JSX composite index lost 2.5 percent or 19.98 points last
\nweek to close at 666.84 against the previous week's closing of
\n688.04.<\/p>\n
Last week share prices rose early in the week but lost ground
\non heavy selling of banking stocks.<\/p>\n
Newspaper reports on the central bank's low lending target
\ncaused investors to dump banking stocks fearing the policy would
\nhurt banks' earnings.<\/p>\n
State-owned Bank Negara Indonesia lost Rp 125 to Rp 1,375,
\nBank International Indonesia fell Rp 125 to Rp 1,750, Bank
\nDanamon eased Rp 100 to Rp 2,575, Bank Niaga slipped Rp 200 to Rp
\n7,200 and Bank Bira dropped Rp 150 to Rp 3,125.<\/p>\n
Banks to rise were Bank Pikko which added Rp 325 to Rp 1,200
\nand Bank Papan Sejahtera which jumped Rp 375 to Rp 1,875.<\/p>\n
Among financial stocks Asuransi Dayin Mitra rose Rp 600 to Rp
\n2,300, Pudjiadi Prestige Limited put on Rp 200 to Rp 925, while
\nIntinusa Selareksa leapt Rp 375 to Rp 1,775.<\/p>\n
Most blue chip stocks fell. PT Telkom fell Rp 150 to Rp 3,900,
\nIndosat by Rp 75 to Rp 6,575, HM Sampoerna by Rp 450 to Rp 11,450
\nand Gudang Garam by Rp 600 to Rp 10,050.<\/p>\n
Noodle maker Indofood Sukses Makmur's were snapped on news
\nthat tycoon Putera Sampoerna had bought about 5 percent of the
\ncompany and planned to buy another 10 percent.<\/p>\n
But this was bad news for cigarette maker H.M. Sampoerna,
\nwhich is controlled by Putera. The company's share prices plunged
\non fears that Putera's plan to own up to 15 percent in Indofood
\nwould affect the cigarette company's earnings.<\/p>\n
Putera later said the purchase was a personal investment. (09)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jsx-share-prices-expected-to-be-mixed-this-week-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }