Share expected to go flat after reaching their peak<\/p>\n
JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX) is
\nexpected to go flat this week because investors are waiting for
\nannouncements from the listed companies' annual financial results
\nand new initial public offerings (IPOs).<\/p>\n
Securities analysts and brokers said that both individual and
\ninstitutional investors were likely to be in \"wait and see\" mode.<\/p>\n
The investors will hold trading activities awaiting the
\noutcome of the annual financial reports of blue chip companies,
\nwhich are expected to be announced this week.<\/p>\n
\"Some investors are also shifting their investments to the
\nprimary market to benefit from new IPOs,\" an analyst said about
\nthe market's gloomy outlook.<\/p>\n
Laksono D Widodo of ING Barings Securities said the market
\nwill stagnate after showing a decline last week.<\/p>\n
\"The market will go sideways as investors change investment
\ndirection,\" he said, adding that the decline in the investors'
\nactivities would really affect trading activities because a bulk
\nof foreign investments are also expected to enter the market.<\/p>\n
The daily turnover volume declined 20 percent to 183.8 million
\nshares from 222 million shares in the previous weeks. The
\ntransaction value dropped to Rp 411.42 billion (US$173.6 million)
\nfrom Rp 577.8 billion ($243.8 million).<\/p>\n
Jasmine Tedja of HSBC Securities agreed with Laksono and said
\nthe investors were now expecting the listed companies to announce
\ntheir financial results.<\/p>\n
\"The investors hold their investments until they announce
\ntheir financial results,\" she said.<\/p>\n
Securities analysts and brokers said trading on the JSX had
\nbeen, unusually, \"very\" active in the past few weeks, bringing
\nits Composite Index to break the 705 mark.<\/p>\n
The composite index peaked at 707.37 points on Feb. 13, the
\nsecond trading day after the Chinese New Year and Idul Fitri
\nholidays.<\/p>\n
Analysts and brokers said such a high index was driven by the
\ninflow of foreign funds into the local market.<\/p>\n
However, the JSX composite index lost 7.98 points to close
\nFriday at 694.49 from the previous week's 704.47 points.<\/p>\n
Most analysts did not see any direct impact from the death of
\nChinese Patriarch Deng Xiaoping to the drop in trading
\nactivities.<\/p>\n
Other markets in the region, such as Hong Kong and Taiwan,
\nalso did not see any negative impact from Deng's death. Hong Kong
\nshare prices ended 0.2 percent higher, while Taiwan's were 1.5
\npercent higher last week.<\/p>\n
Last week's losers include Bank Negara Indonesia (BNI),
\nTelkom, Indosat, cigarette-makers Gudang Garam and HM Sampoerna.<\/p>\n
Astra International, however, gained ground despite the drop
\nin prices of other blue chip stocks.<\/p>\n
BNI fell by Rp 25 to close at Rp 1,700, Telkom by Rp 100 to
\nclose at Rp 4,100, Indosat by Rp 150 to Rp 7,050, Gudang Garam by
\nRp 50 to Rp 10,800 and HM Sampoerna by Rp 475 to Rp 14,150.<\/p>\n
Astra's share rose by Rp 100 to Rp 6,350 due to reports of the
\ncompany's chief commissioner asking its Japanese principal to
\nincrease the local content of its car products in Indonesia.<\/p>\n
Analysts said the company's chief commissioner's move was
\nconsidered as a good sign for the company's future.<\/p>\n
Despite the fall of most blue chips, second and third-line
\nstocks saw high trading activities. Midsized shares, including
\nPrima Alloy Steel, Indospring, Kurnia Kapuas, Soedarpo
\nCorporation, Tembaga Mulia, Hotel Prapatan, Ganda Wangsa Utama,
\nbooked significant gains.<\/p>\n
Prima Alloy Steel ended 97.50 percent higher, rising by Rp
\n1,950 to Rp 3,950, Indospring by Rp 950 to Rp 2,150, Kurnia
\nKapuas by Rp 1,275 to Rp 3,075 and Hotel Prapatan by Rp 575 to Rp
\n3,200.<\/p>\n
Analysts attributed the increase of Prima Alloy's share prices
\nto the company's plan to make a stock split. Hotel Prapatan's
\nshare prices increased amid the company's plan to hold a
\nshareholders' meeting to approve the appointment of new board
\ndirectors in the weeks ahead.<\/p>\n
The Surabaya-based shoes and rubber sandals producer PT Ganda
\nWangsa Utama received a good response from investors on a rumor
\nthat new investors would acquire a large portion of the company's
\nshares. Investors believed that the entry of the new shareholder
\nwould further improve the company's business activities. Its
\nshare price rose by Rp 200 to close at Rp 1,125 last week against
\nthe previous week's Rp 925. (09)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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