JSX shares plunge 1.3% on profit taking<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nclosed 1.3 percent lower yesterday, bringing the week's total
\nloss to 3.2 percent due, due to foreign selling pressures and
\nprofit-taking by local investors on concerns about a possible
\nU.S. interest rate hike and domestic political instability.<\/p>\n
The JSX composite index plunged yesterday 7.14 points to
\n561.31, taking the week's total loss to 19.24 points or 3.2
\npercent from the week's opening level of 580.07.<\/p>\n
\"Foreign investors have tried to sell their positions on blue
\nchips to anticipate the possibility of an increase in U.S.
\ninterest rates,\" a dealer with a London-based securities company
\ntold The Jakarta Post.<\/p>\n
\"It's not a new issue but it remains the main reason. The
\npoint is they could not liquidate their portfolios at once due to
\na liquidity problem,\" the dealer said, adding \"the pressures have
\nstarted early this week.\"<\/p>\n
\"The market lost support from foreign investors today and it
\nbecame worse as local investors had anticipated foreign
\ninvestors' move of profit taking,\" another dealer from PT
\nPentasena Arthasentosa, Sumirat, told the Post.<\/p>\n
Sumirat said that foreign investors' moves were also triggered
\nby a belief that Japan might also raise its interest rates.<\/p>\n
\"It should be noted that American investors have a big
\nportfolio in Japan.\"<\/p>\n
A senior analyst with a European-based brokerage, who asked
\nnot to be named, believed that what was happening on the JSX was
\nnormal because foreign investors usually take quick action to
\nsecure their portfolios on political issues.<\/p>\n
The analyst and the two dealers shared the opinion that the
\nJSX is affected not only by such interest rate issues but also by
\nthe political issue related to the continuing demonstrations by
\nthe supporters of the ousted chairperson of the Indonesian
\nDemocratic Party (PDI), Megawati Soekarnoputri.<\/p>\n
They, however, gave different views as to whether the PDI
\ndemonstrations have a minimal or strong impact on the JSX.<\/p>\n
Another political issue is a rumor which emerged yesterday
\nmorning about President Soeharto's health.<\/p>\n
\"I heard the rumor but I don't see that it is the main reason
\nfor today's bearish mood,\" one of the two dealers said.<\/p>\n
\"But it's not to say that the rumor has had no impact on the
\nmarket,\" the dealer added.<\/p>\n
The JSX's total trading volume yesterday was 97.8 million
\nshares valued at Rp 237.9 billion.<\/p>\n
Declining stocks outnumbered gainers 87 to 25.<\/p>\n
\"Big caps stocks are the most easily hurt in any case of
\nforeign selling pressures because they are the most liquid
\nstocks,\" a dealer said.<\/p>\n
\"But today's selling on big caps were not only done by foreign
\ninvestors but also by local investors,\" he added.<\/p>\n
Some blue chip stocks which declined yesterday were HM
\nSampoerna (which dropped by Rp 400 to Rp 23,900), Gudang Garam
\n(by Rp 200 to Rp 9,100), Indosat (by Rp 25 to Rp 7,525), BII (by
\nRp 200 to Rp 5,700), Tambang Timah (by Rp 150 to Rp 4,050) and
\nIndocement (by Rp 175 to Rp 7,125). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-shares-plunge-13-on-profit-taking-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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