Share price on JSX expected to gain ground<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange
\n(JSX) are expected to strengthen this week after losing ground
\nlast week.<\/p>\n
Securities analysts said the buying sentiment would likely
\nimprove and that many investors would reenter the market to
\nbenefit the low prices.<\/p>\n
They said that unlike last week, when many investors dumped
\ntheir shares on fears that the recent devaluation of the
\nPhilippine peso would affect the Indonesian rupiah, prices would
\nincrease this week.<\/p>\n
"There was a sign of speculative trading of the rupiah but I
\nthink such a bad situation is over," one analyst said.<\/p>\n
The rise in the aid commitment made by the Consultative Group
\non Indonesia (CGI), a consortium of donor nations and financial
\ninstitutions, in its meeting in Tokyo, indicated the group's
\nstrong confidence in the country's economy.<\/p>\n
"The rise in the loan commitment will also improve foreign
\ninvestors' trust and they will reenter the market," he said.<\/p>\n
The CGI pledged US$5.3 billion in fresh loans for this fiscal
\nyear, up from $5.26 billion last year.<\/p>\n
The trading activities were dominated by sellers last week,
\npushing down most of the small and medium share prices. The JSX
\nComposite Index, however, closed almost unchanged at 724 last
\nweek as compared to 723.42 the previous week.<\/p>\n
"Many share prices declined as investors feared the CGI would
\nlower its commitment. If it had happened it would have affected
\nthe development plan," Edwin Syahruzad of Penthasena Arthasentosa
\nsaid.<\/p>\n
"The increase in CGI aid, nonetheless, sent a very positive
\nmarket sentiment," he said.<\/p>\n
The analysts said that this improved situation and would
\nencourage foreign investors to buy after taking profit last week.<\/p>\n
Debut<\/p>\n
Several companies will make their capital market debut this
\nweek and their floatings are expected to further improve the
\ntrading activities.<\/p>\n
Chemical firm Lautan Luas, synthetic yarn producer PT Panasia
\nFilament Inti, Lippo General Insurance and property firm Lippo
\nCikarang, are scheduled list their shares on the Jakarta bourse
\non July 21, July 22 and July 24 respectively.<\/p>\n
Bank Arya Panduarta of the Ongko Group will float its shares
\nJuly 31.<\/p>\n
Besides that, some securities dealers expected foreign funds
\nmanagers to enter the market in anticipation of better-than-
\nexpected second quarter results.<\/p>\n
Asian Development Securities' head of dealers, Vera Marpaung,
\nsaid: "We're waiting for good results in the second semester."<\/p>\n
The JSX composite index rose 0.58 points higher last week to
\nclose at 724.00 on Friday from the previous week's 723.42 points.<\/p>\n
Overall, the performance of share prices were lower last week,
\nreflected in the declining of volume turnover and transaction
\nvalue.<\/p>\n
The total average daily turnover declined by 11 percent last
\nweek to reach only 280.1 million shares, down from the previous
\nweek's 312.3 million shares.<\/p>\n
The average transaction value also dropped by 19 percent to
\nachieve Rp 496.08 billion ($206.7 million) last week, from the
\nprevious week's Rp 590.88 billion ($246.2 million).<\/p>\n
The average daily turnover and value declined last week
\nbecause the market was closed on Thursday in observation of
\nProphet Muhammad's birthday.<\/p>\n
Last week, blue chips stocks closed mixed.<\/p>\n
State-run Telkom rose Rp 100 over the week to close at Rp
\n4,025, satellite operator Indosat climbed Rp 150 to Rp 7,575,
\nGudang Garam climbed Rp 75 to Rp 9,500.<\/p>\n
Cigarettemaker HM Sampoerna shed Rp 50 to close at Rp 9,375,
\nBank Negara Indonesia lost Rp 50 to Rp 1,475, while Bank
\nInternasional Indonesia shed Rp 75 to Rp 1,825. The country's
\nlargest automaker Astra International dropped Rp 325 to Rp 8,350.
\n(aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/share-price-on-jsx-expected-to-gain-ground-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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