Share prices down 1.43% at JSX on profit taking<\/p>\n
JAKARTA (JP): Profit taking by both foreign and local
\ninvestors pushed share prices down 1.43 percent on the Jakarta
\nStock Exchange (JSX) yesterday.<\/p>\n
"I'm not so sure what the main reason for today's drop is.
\nTechnically, I would say that the drop is due to foreign profit
\ntaking but I cannot say that there is a strong foreign selling
\npressure because there is also foreign buying," a senior dealer
\nof PT Panin Securities, who asked not to be named, told The
\nJakarta Post.<\/p>\n
The JSX composite index fell 8.04 points to close at 554.79
\npoints yesterday. Losers led gainers by 63 to 33, while 41
\ncounters remained unchanged.<\/p>\n
Total trading volume reached 132 million shares worth Rp
\n285.13 billion (US$121.48 million).<\/p>\n
"There was a strong signal of profit taking in the Monday
\nafternoon session when the prices of stocks which had already
\nincreased seven points in the morning declined to close only one
\npoint higher than the previous trading day," said Deny Riady from
\nPT Asian Development Securities.<\/p>\n
"People might have assumed that this week was the right time
\nfor making profit. And my best guess is those investors only
\nshifted their portfolios from one stock to another," the dealer
\nfrom Panin said, adding that "big deals were done among foreign
\nbrokers."<\/p>\n
The dealer added that several foreign brokerage firms like ING
\nBaring and WI Carr were net sellers, while Credit Lyonnais,
\nJardine Fleming and SBC Warburg were net buyers.<\/p>\n
U.S. brokerage firm Merrill Lynch also made large buy
\ntransactions yesterday, for Indosat shares also.<\/p>\n
"Indonesia is definitely one of the risky markets in the Far
\nEast, from which people are trying to leave, looking at better
\ngrowth areas in Latin America or Eastern Europe," a dealer with a
\nLondon-based brokerage was quoted by AFX Asia as saying.<\/p>\n
Telecommunications operators Telkom and Indosat declined by Rp
\n100 and Rp 150, respectively, to close at Rp 3,325 and Rp 7,525.<\/p>\n
Diversified conglomerate Bimantara, which is controlled by
\nPresident Soerharto's second son Bambang Trihatmodjo, fell Rp 100
\nto Rp 2,300, while toll road developer Citra Marga declined by Rp
\n50 to Rp 1,550.<\/p>\n
Cigarette maker HM Sampoerna lost Rp 175 to close at Rp
\n24,100, while Gudang Garam declined by Rp 275 to Rp 8,800.<\/p>\n
Other big shares suffering losses were Semen Gresik (which
\ndropped by Rp 75 to Rp 5,725), Indocement (by Rp 125 to Rp
\n6,800), Semen Cibinong (by Rp 50 to Rp 3,950), BII (by Rp 125 to
\nRp 5,700) and Indah Kiat (by Rp 50 to Rp 2,225).<\/p>\n
Meanwhile, the JSX yesterday suspended share trading in PT
\nGajah Surya Multi Finance, of the Gajah Tunggal Group, only 30
\nminutes before the market closed.<\/p>\n
The JSX's management said in a statement that the suspension
\nwas done because Gajah Surya's share prices rose sharply, by more
\nthan 30 percent, from Rp 1,150 to a high of Rp 1,500 before the
\nsuspension.<\/p>\n
Gajah Surya was also recorded as the most active stock with
\n22.89 million shares changing hands.<\/p>\n
"The temporary suspension will be lifted when the company's
\nmanagement discloses the significant issues which boosted the
\nshare price," a JSX director, Mas Achmad Daniri, was quoted by
\nthe statement as saying.<\/p>\n
Several brokers contacted by the Post said that last week's
\nrumors about Gajah Surya failed to push up its share price.<\/p>\n
"But it seems to me that investors positively accepted those
\nrumors today," one of the brokers said.<\/p>\n
He said there was a widespread rumor that BDNI, a listed bank
\nof the Gajah Tunggal group, might have made a proposal to acquire
\nGajah Surya.<\/p>\n
Investors also speculated that Gajah Surya is currently
\npreparing a rights issue.<\/p>\n
Another rumor said that Gajah Surya is preparing to change its
\nstatus from a multi-finance company into the holding company of
\nthe group's financial services.<\/p>\n
A dealer said the rumors about Gajah Surya also boosted
\nrelated stocks like BDNI, Gajah Tunggal and Andayani Megah.<\/p>\n
BDNI rose by Rp 75 percent to Rp 1,900 with a trading volume
\nof 5.3 million shares.<\/p>\n
Tire maker Gajah Tunggal rose Rp 50 to Rp 1,250 with a trading
\nvolume of 7.3 million shares while Andayani Megah rose Rp 125 to
\nRp 1,375, with 6.4 million shares changing hands. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/share-prices-down-143-at-jsx-on-profit-taking-1447893297",
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