JSX share prices likely to bounce back<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchanges (JSX) share prices
\nare likely to bounce back this week as fears on a possible
\nincrease in U.S. interest rates subside.<\/p>\n
Securities analysts said the U.S.'s February job data issued
\nlast week showed little upward pressure on wages, making fears of
\nthe rates hike weaken.<\/p>\n
"This will have a positive impact on Wall Street. An
\nimprovement in the buying sentiment there will also fuel trading
\nactivities in the Asian markets, including Indonesia," one
\nanalyst said.<\/p>\n
However, DBS Securities Indonesia predicted JSX share prices
\nwere likely to consolidate in the weeks ahead as fears over the
\nrates hike remain.<\/p>\n
The U.S. Federal Reserve is scheduled to have their steering
\ncommittee meeting on March 25 to decide whether or not to raise
\nrates.<\/p>\n
Stock trading activities here are sometime more sensitive to
\nthe increase in the interest rate in the U.S. than that made by
\nthe local banks, due to the dominance of foreign investors.<\/p>\n
The other factor, which could affect the trading activities
\nthis week, is the performance of the corporate financial reports,
\nDBS Securities said.<\/p>\n
Publicly-listed companies have begun publishing their 1996
\nbalance sheet. Some, including those reported by Indosat and HM
\nSampoerna have disappointed investors, as profits were less than
\nexpected.<\/p>\n
"As in other regional markets, JSX share prices will be highly
\ndetermined by corporate earnings," an analyst said.<\/p>\n
The JSX composite index dropped 3.1 percent or 21.56 points
\nlast week to 683.83, against the previous Friday's end of 705.37,
\nas a result of negative impact of the less-than-expected
\ncorporate earnings.<\/p>\n
The daily transaction volume averaged 217.5 million shares
\nlast week, down from 248.8 million shares the previous week.<\/p>\n
The daily transaction value also saw a drop to Rp 562.39
\nbillion (US$ 236.3 million) last week against Rp 631.4 billion
\n($265.3 million) the previous week.<\/p>\n
Last Friday the JSX composite index was at 683.80, with 174.8
\nmillion shares changing hands on a value of Rp 443.6 billion.<\/p>\n
DBS Securities said Indofood Sukses Makmur's internal
\nacquisition was considered too expensive and could also
\ndiscourage investors.<\/p>\n
Indofood, from the widely diversified Salim Group, planned to
\ntake over 11 companies PT Intiboga Sejahtera, PT Salim Oil
\nGrains, PT Bitung Menado Oil Ltd and PT Argha Giri Perkasa from
\nthe same business group to boost its food-related businesses.<\/p>\n
The Rp 1.75 trillion acquisition would be very expensive and
\ncontribute little growth to the company, the securities company
\nsaid in its weekly review.<\/p>\n
According to the securities company's research division,
\ncompanies like HM Sampoerna and Asahimas Flat Glass, which
\nrecorded a disappointing financial result, would remain
\nunattractive stocks.<\/p>\n
"HM sampoerna is predicted to further book financial losses in
\nthe coming two years," an analyst from a joint venture securities
\nfirm said.<\/p>\n
The shares of the country's state-owned Bank Negara Indonesia
\nrecorded the highest volume over the week with 84.3 million
\nshares changing hands at a total value of Rp 133.98 billion, with
\nGreat River International in the second rank with 62.2 million
\nshares exchanging hands on value of Rp 92.2 billion and Lippo
\nLand Development with 60.3 million shares changing hands on value
\nRp 392.7 billion.<\/p>\n
Lippo Land was the bargain hunting target by investors, after
\nreports of their plan to merge with another property arm of Lippo
\ngroup.<\/p>\n
Lippo Land Development gained Rp 1,125 to close at Rp 6,925
\nlast week, against Rp 5,750 the previous week, Lippo Pacific
\nFinance Rp 850 to close at Rp 3000 last week against Rp 2,150 in
\nthe previous week, Bank PDFCI Rp 775 to close at Rp 2,800 last
\nweek against Rp 2,025 previous week, Hotel Sahid Rp 300 to Rp
\n1,700.<\/p>\n
"The Lippo Group's shares were among the target last week,"
\none broker from a joint venture brokerage firm said.<\/p>\n
Among the blue chips, HM Sampoerna's shares remained unchanged
\nat Rp 11,900, while others fell. State-owned telecommunication
\nfirm PT Telkom dropped Rp 125 to close at Rp 1,050, Gudang Garam
\nRp 25 to Rp 11,650, Indosat 125 to Rp 6,650, Bank BNI Rp 225 to
\nRp 1,500 and Astra Rp 175 to Rp 6,025. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-share-prices-likely-to-bounce-back-1447893297",
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