JSX shares expected to remain strong<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nare expected to remain strong this week as both foreign and local
\ninvestors are likely to continue to flock to the market,
\nsecurities analysts and brokers said.<\/p>\n
The analysts said that the success of the general election on
\nMay 29 had created a very positive atmosphere in the market.<\/p>\n
\"The election ran smoothly in almost all parts of the country.
\nThis makes foreign investors more confident about Indonesia's
\npolitical situation,\" said Morgan Grenfell's research head, Adnan
\nTan, over the weekend.<\/p>\n
He said foreign fund managers now felt more comfortable after
\nthe smooth process of election day on Thursday.<\/p>\n
Brokers said many investors pulled out of the market in the
\nlast two months in fear of possible riots during the campaign
\nperiod.<\/p>\n
\"It was something that investors had anticipated,\" a broker
\nsaid.<\/p>\n
Trading was very active on the JSX on Thursday and Friday with
\nan increased presence of foreign investors. The trading volume
\nreached 378.31 million shares on the regular market on Thursday,
\nwith total transactions worth Rp 784.32 billion (US$326.80
\nmillion). Friday saw 419.8 million shares changing hands worth Rp
\n861.8 billion.<\/p>\n
\"Trading was very strong thanks to the country's successful
\nelection,\" a dealer from Bhakti Investama Securities said.<\/p>\n
\"Foreign investors started entering the market and they will
\ncontinue to do so in the coming weeks,\" said securities analyst,
\nLuciana Budiman, from ING Barings Securities.<\/p>\n
Dealers attributed the increase of trading transactions to
\nbargain hunting of several blue chip stocks by foreign investors.<\/p>\n
Tan said that most foreign fund managers had flocked to the
\nmarket because they had found other regional markets not as
\nstrong as Jakarta's.<\/p>\n
\"Foreign investors have started taking their money out of
\nThailand, Philippine and Malaysia markets,\" Tan said.<\/p>\n
\"They brought a lot of money into the Indonesian market,\" he
\nsaid.<\/p>\n
Tan predicted that the JSX composite index, the local main
\nprice index, would likely surpass 700 points in the weeks ahead.<\/p>\n
Luciana agreed and said that the market would continue to be
\nstrong until the end of this year.<\/p>\n
The JSX composite index rose 37.51 points, or 5.7 percent, to
\nclose at 696.03 last week against 658.52 in the previous week.<\/p>\n
Total average daily volume rose to 283.45 million shares last
\nweek in comparison to 187.37 million shares in the previous week.<\/p>\n
Total daily average value also increased to Rp 552.09 billion
\n(US$ 230.04 million) last week compared to the previous week's Rp
\n343.89 billion (US$ 143.29 million).<\/p>\n
Telkom was up Rp 400 to Rp 4,100 while Indosat rose Rp 450 to
\nclose at Rp 7,250, Cigarette-maker HM Sampoerna jumped Rp 350 to
\nRp 9,825 while competitor Gudang Garam was up Rp 650 to Rp
\n10,500. Bank Negara Indonesia edged up Rp 100 to Rp 1,600 while
\nBank Internasional Indonesia climbed Rp 150 to Rp 2,000.<\/p>\n
Tan said the presence of mutual funds in the capital market
\nalso contributed to the new high transaction record in the local
\nmarket last week.<\/p>\n
\"There is more money seeping its way into the market,\" he
\nsaid. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-shares-expected-to-remain-strong-1447893297",
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"sponsor": "Okusi Associates",
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