Share prices on JSX expected to stabilize<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nare expected to be more stable this week but trading activities
\nwill still be driven by short-term oriented investors, securities
\nanalysts say.<\/p>\n
The analysts said that investors will remain cautious over the
\npolitical impact of the last weekend riots.<\/p>\n
A number of big shares, which booked technical rebounds before
\nthe closing of the week, will have small chance to enjoy another
\ngain.<\/p>\n
Such big caps, they said, may even suffer losses on a profit
\ntaking as investors are likely to switch their bids to second
\nliners.<\/p>\n
\"I would say that the market will be flat next week on an
\nestimated consolidation mood,\" a dealer with a London-based
\nbrokerage told The Jakarta Post over the weekend.<\/p>\n
\"There might not be a high volatility, gainers would be
\nbalanced by losses,\" the dealer added.<\/p>\n
\"In line with a more stable political situation, both foreign
\nand local investors have come back to the market. But unlike what
\nwas happening late this week, they will hunt second liners and
\nthird liners as the opportunity to book gains is much bigger on
\nthose stocks,\" Sumirat from PT Pentasena Arthasentosa told the
\nPost.<\/p>\n
\"What was happening this week is better than expected. We saw
\na big drop on Monday and Tuesday but strong rallies midweek
\npushed stock prices up. It just happened quickly,\" Lippo
\nSecurities managing director Kelvin Lee said.<\/p>\n
\"It seems to me that short-term oriented investors will still
\ndominate the trading as they are still cautious about the
\npolitical impact of last weekend's riots,\" another analyst said.<\/p>\n
Those analysts shared an assumption that last weekend's
\nrebound was also attributable to a court hearing delay, meaning
\nthat investors may also keep in mind that anything could still
\nhappen when the delayed hearing takes place on Aug. 22.<\/p>\n
A court hearing to try a lawsuit filed by the ousted chief of
\nthe Indonesian Democratic Party (PDI), Megawati Soekarnoputri,
\nwas scheduled for last Thursday but it was delayed until August
\n22, because the judge had a toothache.<\/p>\n
The dealers and analysts said Megawati's court hearing remains
\nthe most important event to be watched. So, investors will not
\nrisk their investment by making any big deals here for long term
\nstrategy.<\/p>\n
\"It's great that there were no fresh riots following the delay
\nof the hearing. But it made people nervous to see many soldiers
\nin the street just to secure the hearing,\" one of the dealer
\nsaid.<\/p>\n
\"The situation may be stable next week but it's too hasty to
\nexpect that such a `controllable' situation will continue for a
\nlonger term,\" the dealer added.<\/p>\n
On a technical viewpoint, Sumirat said that some of the second
\nliners and third liners from each sector on the JSX are currently
\nundervalued.<\/p>\n
He declined to name the most wanted stocks but he said some of
\nthem failed to rebound last week.<\/p>\n
\"I would say that the 'bargain hunting' made by local
\ninvestors on the second liners will continue and their move will
\nalso attract foreign investors to follow suit,\" he added.<\/p>\n
Lee foresaw that short-term oriented investors will quickly
\ntake positions this week, not to miss any buying opportunity.<\/p>\n
Another dealer, however, viewed that although prices will
\nfluctuate in a very narrow range, several blue chips will manage
\nto go up because some investors might have been late to regain
\ntheir position last week.<\/p>\n
On the general market sentiment, those analysts shared a
\npositive sentiment as global equity market had recovered last
\nweek following a rally on Wall Street, coupled with a more
\ncontrollable political situation in the country.<\/p>\n
Net seller<\/p>\n
The JSX recorded total transactions of 651 million shares
\nvalued at Rp 1.5 million (US$639 million) last week.<\/p>\n
Foreign investors became net sellers with total sell
\ntransactions of 365.9 million shares worth Rp 1.03 trillion
\nagainst buy transactions of 322 million shares worth Rp 903
\nbillion.<\/p>\n
Stock prices closed the week down 0.6 percent, with its
\ncomposite index decreased 0.34 point at 560.92 points after
\nhitting a low of 533.48 on Tuesday due to panic selling following
\nmass riots in the city.<\/p>\n
Telkom and Bimantara topped the list of most active stocks
\nboth in volume and value, with total transactions of 66 million
\nshares worth Rp 212 billion and 42.5 million shares worth Rp 92
\nbillion respectively.<\/p>\n
State-owned securities company PT Danareksa ranked third-most-
\nactive broker with a trading value of Rp 139.98 billion, while
\nanother local broker PT Makindo was recorded as the most active
\nwith a trading value of Rp 275 billion.<\/p>\n
Dealers speculated that Danareksa and Makindo, together with
\nanother state-owned securities company PT Bahana Securities,
\nintervened in the market Monday to ease selling pressures.<\/p>\n
Danareksa's president, Agus Projo, however, rejected the
\nintervention charge, saying \"We have seen an opportunity to buy,
\nso why shouldn't we take the opportunity.\"<\/p>\n
The other top 10 stocks for value were Gudang Garam (with a
\ntrading value of Rp 86 billion), HM Sampoerna (Rp 85.5 billion),
\nDuta Anggada (Rp 65 billion), Semen Gresik (Rp 53 billion),
\nIndofood (Rp 53 billion), BDNI (Rp 49 billion), Indosat (Rp 45
\nbillion) and Dharmala Intiland (Rp 40 billion). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/share-prices-on-jsx-expected-to-stabilize-1447893297",
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