Positive predictions made on JSX performance<\/p>\n
JAKARTA (JP): Securities analysts project that share prices on
\nthe Jakarta Stock Exchange (JSX) are likely to be firm this week
\ndue to the easing of fears for a possible increase in U.S.
\ninterest rates.<\/p>\n
They also viewed that the listing of several new stocks is
\nalso expected to give a boost to the market.<\/p>\n
\"It's very positive. I think foreign investors have come back
\non blue chips today but their participation is likely to be very
\nlimited next week,\" an analyst with a London-based securities
\ncompany told The Jakarta Post on Friday.<\/p>\n
The analyst, who declined to be named, said that despite a
\nrelatively positive situation on global equity markets,
\nforeigners are still uncertain whether to make big deals here
\nbecause they consider that Indonesia's political situation is
\nstill unstable with the continuing demonstrations by the
\nsupporters of ousted Indonesian Democratic Party chief Megawati
\nSoekarnoputri.<\/p>\n
Megawati was ousted in last month's government-backed congress
\nof the party in Medan.<\/p>\n
\"Many people are still down there in the streets. So, how can
\nwe say that it's already stable,\" said the analyst.<\/p>\n
\"Early this week, investors were concerned about a possible
\nincrease of U.S. interest rates. They cut down their activities
\nwhile waiting for Mr. Greenspan's statement before the U.S.
\nSenate on Thursday. But unlike other market in the region, the
\nJSX didn't decline too much on the issue,\" Lippo Securities'
\nmanaging director, Kelvin Lee, told the Post.<\/p>\n
Alan Greenspan, the chairman of the U.S. Federal Reserve, was
\nreported by Reuters as telling the U.S. Senate Banking Committee
\nthat the Fed will raise interest rates if needed to head off
\ninflation.<\/p>\n
Foreign investors were mostly sidelined in the first few days
\nlast week as they were afraid that the Fed would increase
\ninterest rates in line with a weakening unemployment figure,
\nwhich hit its lowest level in the last six years in June.<\/p>\n
\"The market sentiment is good and its performance will remain
\nstrong despite a bit of profit taking activities likely to happen
\nnext week,\" he added.<\/p>\n
\"I also expect that the listing of PT Surya Dumai, PT
\nFiskaragung and PT Ramayana will also boost investors'
\nactivities,\" he added.<\/p>\n
\"Foreign investors are coming back no matter that the fresh
\nfunds they bring in are still limited,\" Deny Riyadi from PT Asian
\nDevelopment Securities told the Post.<\/p>\n
Those analysts, however, do not expect that the share prices
\nwill go up significantly.<\/p>\n
Rumors<\/p>\n
Last week, the JSX's total trading volume reached 616 million
\nshares valued at Rp 1.3 trillion, against the previous week's
\nfigures of 478 million worth Rp 1.1 trillion.<\/p>\n
Share prices crept up by only 0.02 percent on fears of the
\nhike of U.S. interest rates, with the composite index increasing
\nby 0.127 point to 580.07 at the week's close.<\/p>\n
The composite index dropped five points on Monday following a
\nheavy correction on the Wall Street but then recovered on
\nTuesday.<\/p>\n
Lee said that several big deals last week were flavored by
\nrumors.<\/p>\n
Property company Duta Anggada was recorded as the top traded
\nstock in value and volume with 67 million shares changing hands
\nworth Rp 147 billion on rumors that it would sell a plot of land
\nbehind Chase Plaza in Central Jakarta to a foreign buyer.<\/p>\n
Another property company, Dharmala Intiland, was also boosted
\nby a rumor that it might have arranged a merger with PSP Group.<\/p>\n
Dharmala recorded a trading volume of 15.7 million shares
\nworth Rp 34 billion during the week.<\/p>\n
Meanwhile, the shares of a textile company, Pan Brothers Tex,
\nwhich signed a cooperation agreement with Batik Keris Group in
\nthe previous week, went up again by 65 percent to Rp 1,950, with
\ntrading volume reaching 47 million shares valued at Rp 85
\nbillion.<\/p>\n
In the last two weeks, Pan Brothers share prices have already
\nincreased by 160 percent.<\/p>\n
Other top 10 stocks in trading values were Telkom (with a
\ntotal trading value of Rp 91 billion), Lippo Securities (Rp 57
\nbillion), HM Sampoerna (Rp 46 billion), Indosat (Rp 37 billion),
\nBank Internasional Indonesia (Rp 36 billion), Semen Gresik (Rp 34
\nbillion) and JIHD (Rp 34 billion).<\/p>\n
The closing prices of several big shares on the rise were
\nBarito Pacific Timber (Rp 1,750 against the previous week's close
\nof Rp 1,425) Gudang Garam (Rp 9,675 against Rp 9,125), Indosat
\n(Rp 8,075 against Rp 7,525) and Indah Kiat Pulp & Paper 9Rp 2,200
\nagainst Rp 2,150). (alo)<\/p>",
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