JSX's politically connected stocks down on profit taking<\/p>\n
JAKARTA (JP): Speculative buying of politically connected
\nstocks failed to sustain a recent surge in prices on the Jakarta
\nStock Exchange (JSX) yesterday, with shares losing ground in
\nactive trading, brokers said.<\/p>\n
"Local investors dominated the market's trading activities," a
\nbroker with BZW Niaga Securities said, pointing out that foreign
\ninvestors were still reluctant to enter the market.<\/p>\n
The JSX Composite Index fell 1.6 percent or 8.13 points to
\n504.00 points yesterday from 512.14 the previous day.<\/p>\n
About 626.22 million shares changed hands on the regular
\nmarket valued at Rp 495.24 billion (US$48.08 million).<\/p>\n
The brokers said most politically connected stocks, which
\nbecame main buying targets over the past two days, fell on a
\nprofit taking.<\/p>\n
They said automaker Astra International's stocks, in which
\nnewly installed Minister of Industry and Trade Mohamad "Bob"
\nHasan has a significant stake, fell Rp 25 to close at Rp 1,875
\nwith a total trading volume of 13.73 million shares.<\/p>\n
Toll road operator Citra Marga Nusaphala Persada (CMNP),
\ncontrolled by Minister of Social Affairs Siti Hardijanti Rukmana,
\nPresident Soeharto's eldest daughter, slipped Rp 25 to close at
\nRp 625 with a total trading volume of 42.21 million shares.<\/p>\n
Bimantara Citra, controlled by President Soeharto's second son
\nBambang Trihatmodjo, fell Rp 75 to Rp 950, with 23.34 million
\nshares changing hands.<\/p>\n
The brokers said foreign investors, who have been largely
\ninactive over the past few days, were still waiting for further
\ndevelopments on the government's new measures to resuscitate the
\ncountry's paralyzed economy.<\/p>\n
The head of research at Sigma Batara Securities, Fadjar Limin
\nSutandi, said trading activity in the local market would be
\ndetermined by the results of ongoing talks between the
\nInternational Monetary Fund (IMF) and the government on economic
\nreforms and the plan to peg the rupiah to a foreign currency at a
\nfixed rate.<\/p>\n
"Since there has been no clear decision on these two problems,
\ntrading activities will remain thin and prices will possibly slip
\nfurther in the coming weeks," he said.<\/p>\n
He said most investors in the local market would continue to
\nmake speculative transactions because there were no policy
\ncertainties to help create their investment strategies.<\/p>\n
As stock prices fell, the rupiah in the currency market
\nremained stable in thin trading yesterday as the market lacked
\nfresh incentives for significant transactions, currency dealers
\nsaid.<\/p>\n
The rupiah closed at 10,300 against the U.S. dollar yesterday,
\nsimilar to the previous day's close at 10,300, dealers said.<\/p>\n
The rupiah was traded in a range of between 10,000 and 10,500
\nthroughout the day.<\/p>\n
Currency dealers said an IMF statement issued by visiting
\nofficials outlining five discussion topics with the government --
\nmonetary, bank restructuring, budget and subsidy, structural
\nprogram and private debt restructuring issues -- did not help to
\nlift market sentiment.<\/p>\n
"People have yet to see any concrete moves to overcome the
\ncountry's crisis," a chief dealer with a local private bank said,
\npointing out that the market was now waiting for the outcome of
\nthe ongoing talks. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsxs-politically-connected-stocks-down-on-profit-taking-1447893297",
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