Local share prices continue falling<\/p>\n
JAKARTA (JP): Jakarta stock market continued its sideway drift
\nlast week as investors pondered upon the implications of a chain
\nof events unfolding swiftly across the local and foreign
\nfinancial markets.<\/p>\n
The JSX composite index closed virtually unchanged from the
\nprevious week at 419.5 points by the end of last Friday.<\/p>\n
Despite efforts by the Central Bank of Japan to control
\nJapan's escalating yen against the U.S. dollar, traders continued
\nto push the dollar down to a low of 79.75 on Wednesday to the
\ndetriment of stock markets around Asia. And the state-owned PT
\nTelekomunikasi Indonesia (PT Telkom) finally made a surprise
\nannouncement to float its shares on two international stock
\nexchanges London and New York, besides Indonesia.<\/p>\n
In the meantime, the cement saga dragged on with the
\ngovernment announcing a new decree that cement prices would be
\nlowered by 10 percent, following a 40.7% increase the week
\nbefore.<\/p>\n
As companies continued to announce their 1994 results last
\nweek, two timber companies, Sumalindo Lestari and Barito Pacific,
\nstood out among the rest, for their disappointing results
\nattributed to poor plywood prices.<\/p>\n
Rating agency Standard & Poor however managed to keep investor
\nmorale up with the announcement that it has raised Indonesia's
\nlong-term foreign currency rating to triple B (BBB) from triple B
\nminus (BBB-) as a result of improved financial management and
\nmacroeconomic reform by the government.<\/p>\n
In the money market, we expect the rupiah liquidity to tighten
\nnext week due to maturing short-term SBPUs, and overnight fund
\nrate is expected to be pushed up slightly to about 17 percent.<\/p>\n
The Jakarta Stock Exchange (JSX0 index opened the week at
\n419.45 and fell to 414.21 on Wednesday, the lowest since
\nSeptember 1993.<\/p>\n
However, as we predicted, the market picked up 1.8 points
\n(0.43 percent) to 419.52 at the end of the week. In the absence
\nof positive factors to sustain the upward momentum, we expect the
\nindex to continue its sideway movement and fluctuate at around
\nthe 420 level.<\/p>\n
Foreign investors were mostly sidelined as the stock market
\nwas still heavily influenced by the weak and unstable U.S.
\ndollar. Some blue chip counters which saw active trading included
\nSemen Cibinong, Semen Gresik, Barito Pacific, Gudang Garam, HM
\nSampoerna, Astra Int'l, Indosat, Indofood, BDNI, BII, and Gadjah
\nTunggal.<\/p>\n
Local players were actively speculating in property stocks
\nwhich included Duta Anggada, Dharmala Intiland, Lippoland, PSP,
\nand JIHD. Other non-property counters were Indah Kiat, SMART,
\nBarito Pacific, Indosat, Astra Int'l, CMNP and Gadjah Tunggal.<\/p>\n
Average daily turnover on the regular board increased to 10.18
\nmillion shares worth Rp 31.98 billion (US$14.39 million )
\ncompared to 6.88 million shares worth Rp 25.20 billion (US$11.34
\nmillion) in the previous week. Total turnover for the week also
\nincreased to 112.86 million shares valued at Rp 358.81 billion
\n(US$161.41 million) from 96.31 million shares valued at Rp 320.73
\nbillion (US$144.34 million) in the previous week.<\/p>\n
Some of the best performers last week were Kawasan Industri
\nJababeka (up Rp 800), HM Sampoerna (up Rp 750), Gudang Garam (up
\nRp 650), Sorini Corp (up Rp 500), and Davomas Abadi (up Rp 400).
\nThe biggest losers were Unilever (down Rp 1,800), Bank Bali (down
\nRp 750), Tembaga Mulia (down Rp 500), Bank Niaga (down Rp 450)
\nand Summarecon (down Rp 350). Losers outnumbered gainers by 69 to
\n44, while 31 remained unchanged.<\/p>\n
-- By Sigma Batara<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/local-share-prices-continue-falling-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }