Quiet trading likely on JSX this week<\/p>\n
JAKARTA (JP): Share trading on the Jakarta Stock Exchange
\n(JSX) is likely to be quiet again this week on speculations of a
\npossible hike in the U.S. interest rate and lack of fresh news on
\nthe domestic side.<\/p>\n
The tension between the United States and Iraq could become
\nanother reason to further emphasize the market's wait-and-see
\nattitude, analysts said.<\/p>\n
Some analysts contacted by The Jakarta Post viewed that fears
\non the possible hike in U.S. interest rates have been in the
\nmarket over the past two weeks but the stronger U.S. jobs data
\nreleased last Friday is likely to intensify the fears.<\/p>\n
The analysts also viewed that the U.S. missile attacks on Iraq
\nearly last week should have caused no direct impact to
\nIndonesia's economy but the domination of global investors on the
\nmarket gives a massage that any development in the Iraq-U.S.
\nconflict will affect the JSX's performance to a certain extent.<\/p>\n
Those analysts also observed that in addition to worries on
\nthe possible hike of U.S. interest rates and the tension in the
\nMiddle East, the JSX actually has its own reasons for
\ncontinuously being sluggish in the next few weeks.<\/p>\n
\"We do not expect any big news, both positive or negative, to
\ncome next week. So, we may see quiet activities for another few
\nweeks,\" the president of the London-based BZW Niaga Securities,
\nSteven Kenny, told the Post over the weekend.<\/p>\n
Kenny particularly noted that the return of some fund managers
\nfrom a few weeks of holidays failed to boost the market's
\nactivities.<\/p>\n
\"What I know, funds allocated for Indonesia are very limited,\"
\na senior manager of the Japanese-based ADS Securities, Ikeda,
\ntold the Post.<\/p>\n
Ikeda also estimated that the market still lacks support to
\nmake a rebound although the prices have already gone down.<\/p>\n
Kenny and Ikeda shared the opinion that the market may rebound
\nbut not at the moment because investors, both foreign and
\ndomestic, are still cautious to buy shares.<\/p>\n
\"It's too boring to stay in the market and we have yet to see
\nany signal of a recovery,\" a senior dealer said.<\/p>\n
The dealer pointed out that while keeping a close look at U.S.
\ninterest rate trends, investors also need more time to understand
\nthe latest move of the Lippo Group.<\/p>\n
Fears of a U.S. interest rate hike renewed late last week when
\nthe Labor Department announced long-awaited U.S. employment data,
\nshowing that the economy created 250,000 new nonfarm jobs in
\nAugust, against the revised 228,000 in July.<\/p>\n
The U.S. jobless rate slumped to a seven-year low of 5.1
\npercent in August from 5.4 percent in July.<\/p>\n
\"The (jobs) numbers lead us to think that the Federal Reserve
\nwill probably move in this September, raising rates by 25 basis
\npoints,\" a Wall Street analyst was quoted by Reuters as saying.<\/p>\n
Economists generally had expected nonfarm payrolls to rise by
\nan average of 224,000 in August and the unemployment rate to edge
\nlower, to 5.3 percent.<\/p>\n
The board of the Federal Reserve's Open Market Committee will
\nmeet on Sept. 24.<\/p>\n
Lippo<\/p>\n
Last week, stock prices on the JSX continued to decline by
\nanother 0.7 percent with its benchmark composite index decreasing
\nby 3.85 points to close the week at 543.75 points.<\/p>\n
Total trading value stood at Rp 1.1 trillion (US$466 million)
\nlast week, with 547 million shares changing hands. Foreign buy
\ntransactions amounted to Rp 714 billion against sell transactions
\nof Rp 694 trillion.<\/p>\n
Dealers said that investors turned their attention on the
\nLippo Group's move to restructure its financial division.<\/p>\n
Two stocks of the Lippo Group -- Lippo Securities and Lippo
\nLife Insurance -- continued to record large transactions but
\nfailed to rebound.<\/p>\n
The two stocks booked a total transactions value of Rp 45.8
\nbillion and Rp 53 billion respectively, with trading volumes of
\n33 million shares and 26.7 million shares.<\/p>\n
Lippo Securities share price dropped further by Rp 75, to Rp
\n1,350 at last week's close, while Lippo Life slumped by Rp 50, to
\nRp 1,950.<\/p>\n
\"The market was still wondering what is the motive behind the
\nLippo Group's major move,\" a dealer told the Post.<\/p>\n
Lippo Securities recently announced a plan to acquire another
\n27 percent stake in Lippo Life, while Lippo Life proposed to gain
\na controlling stake in Lippo Bank.<\/p>\n
Meanwhile, the share price of the operator of the Hyatt
\nRegency hotel in Surabaya, East Java, Bumi Modern Hyatt, which
\nposted a net deficit of Rp 31 billion in the last two years, rose
\n60 percent to close at Rp 1,125 on the rumor that a new investor
\nhas proposed to take control of the company.<\/p>\n
Bumi Modern Hyatt has confirmed the rumor but contended that
\nthe proposed transaction has not been closed yet.<\/p>\n
Last week's top 10 most-traded stocks in value other than
\nLippo Securities and Lippo Life were Astra International (with a
\ntrading value of Rp 71 billion), Bakrie & Brothers (Rp 56
\nbillion), PSP (Rp 47 billion), Telkom (Rp 45 billion), Gudang
\nGaram (Rp 36 billion), Semen Gresik (Rp 34 billion), HM Sampoerna
\n(Rp 33 billion) and Berlian Laju Tenker (Rp 32 billion). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/quiet-trading-likely-on-jsx-this-week-1447893297",
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"sponsor": "Okusi Associates",
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