Political factors to reign again in stock mart: Analyst<\/p>\n
JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX) will
\nbe dictated by the domestic political situation this week, with
\ninvestors fearing that instability could arise during the
\nPresident's two-week overseas trip, according to securities
\nanalysts.<\/p>\n
They said lingering fears of a military coup and continued
\nsectarian violence in Maluku would steal a great portion of
\ninvestors' attention this week, thus weighing negatively on JSX
\ntrading.<\/p>\n
President Abdurrahman Wahid, or Gus Dur as he is popularly
\ncalled, left Jakarta on Friday to visit 13 European and Asian
\ncountries, despite rumors that a group of military officers were
\ntrying to take over the government. However, the rumors later
\ndied down.<\/p>\n
Meanwhile, fresh violence erupted in Central Maluku for a few
\ndays late last week, leaving 17 people dead and several injured.<\/p>\n
Maluku has been hit by clashes between Muslims and Christians
\nsince mid-January last year. More than 2,000 people have died and
\nhundreds of thousands more have fled their homes.<\/p>\n
\"The market was not good last week due to political concerns,
\nit will be the same this week,\" one analyst said over the
\nweekend.<\/p>\n
Nevertheless, the Consultative Group on Indonesia's planned
\nmeeting in Jakarta on Tuesday and Wednesday, to discuss the
\ngovernment's proposal for new loans to cover its 2000 budget
\ndeficit, would likely give positive impact on the market.<\/p>\n
Viewing the market more optimistically, Budi Ruseno from
\nBhakti Investama said there were unpleasant rumors leading up to
\nGus Dur's absence, but when such rumors prove wrong the market
\nthis week would be bullish.<\/p>\n
\"There have been mixed news, political and fundamental ones,
\nabout a lot of things at least for the past week,\" Budi said.<\/p>\n
He said rumors about a military coup, even though they had
\nproved baseless, remained to be some concern to some investors.<\/p>\n
Besides the rumors, corporate announcements and takeover news
\nalso triggered active trading of shares in several publicly
\nlisted companies last week. Budi believed such information would
\ncontinue to affect trading of second-layer stocks.<\/p>\n
He said the swift change of information about the fundamentals
\nof a number of shares traded on the JSX boosted market liquidity.<\/p>\n
Meanwhile the rupiah, currency dealers said, would also be
\naffected by concerns over Gus Dur's trip abroad this week.<\/p>\n
They said lingering fears of a military coup had made them
\nuneasy holding rupiah and to some extent would continue to do so.<\/p>\n
The JSX composite index decreased by 4.5 percent to close at
\n634.66 points last week, from 664.69 the previous week.<\/p>\n
Daily average transaction value dropped to Rp 1.12 trillion
\nlast week, compared to Rp 1.97 trillion the previous week.<\/p>\n
The daily average turnover was down slightly to 1.35 billion
\nshares last week from 1.33 billion shares the previous week.<\/p>\n
Last week's top gainers were PT Asuransi Ramayana, whose
\nshares increased by 56.52 percent, PT Transindo Multi Prima by
\n45.66 percent and PT Multipolar by 20 percent.<\/p>\n
The week's big losers were PT Asuransi Harta Aman Pratama,
\nwhose shares fell by 33.33 percent, PT Clipan Finance Indonesia
\nby 27.03 percent and PT Sumi Indo Kabel by 25.71 percent.<\/p>\n
The top brokerage firms by transaction value were PT Danareksa
\nSekuritas with Rp 491.42 billion in transactions, PT Trimegah
\nSecurindolestari with Rp 418.11 billion and PT Asjaya Indosurya
\nSecurities with Rp 391.06 billion.<\/p>\n
The rupiah depreciated 1.6 percent to close the week at 7,400
\nagainst the U.S. dollar, compared to its 7,280 close the previous
\nweek. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/political-factors-to-reign-again-in-stock-mart-analyst-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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