Share prices on JSX likely to lose ground<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
\nare likely to lose ground this week after showing a good
\nperformance in the last two weeks.<\/p>\n
The hint by the U.S. Federal Reserve's chairman Alan Greenspan
\nto raise the interest rate will put investors further on the
\nsideline.<\/p>\n
\"Like those in other regional markets, Indonesian investors
\nare likely to remain in the wait and see stance,\" said a
\nsecurities analyst.<\/p>\n
Analysts said in the next few weeks, the buying appetite would
\nbe weaker as there are no \"fresh incentives\" such as a new
\ngovernment policy or the issuance of economic indicators which
\ncould prop up the buying sentiment.<\/p>\n
Greenspan's comments on the possible increase in the U.S.
\ninterest rate would further undermine trading activities, they
\nsaid.<\/p>\n
In addition to such an unfavorable condition, the launching
\nof several initial public offerings (IPO) would also affect
\ntrading activities in the secondary market.<\/p>\n
The JSX composite index ended 8.88 points higher to close at
\n705.37 last Friday against 694.49 the previous week. The JSX
\ncomposite index, the local benchmark index, fluctuated last week
\nreaching its new high of 712.66 Wednesday Feb. 16 though it fell
\nto 709.92 Thursday before closing at 705.37 Friday.<\/p>\n
The average daily trading volume increased last week to 248.6
\nmillion shares compared to 183.8 million shares the previous
\nweek.<\/p>\n
The average daily trading value also rose to Rp 631.4 billion
\n(US$265.3 million) last week against the previous week's Rp 411.4
\nbillion ($173.6 million).<\/p>\n
A dealer with HG Asia brokerage firm said the market was
\ngenerally slow earlier in the week but a rise in prices of
\nseveral shares managed to push up the weekly price index.<\/p>\n
Blue chips such as cigarette maker HM Sampoerna and Bank BNI
\nwere among last week's losers. Sampoerna's prices dropped by Rp
\n2,250 to Rp 11,900 while BNI lost Rp 25 to close at Rp 1,700.<\/p>\n
Laksono Widodo, an analyst from ING Barings Securities said
\nthe drop in Sampoerna's share prices was due to its less-than-
\nexpected net profits. The company was projected to earn Rp 420
\nbillion in net profits in 1996 but it reached only Rp 394
\nbillion.<\/p>\n
\"Investors were disappointed with its results,\" he said.<\/p>\n
But other blue chips including PT Telkom, Indosat, BNI and
\nGudang Garam booked gains last week.<\/p>\n
PT Telkom's share rose by Rp 75 to Rp 4,175, Indosat by Rp
\n275 to Rp 7,050 and Gudang Garam by Rp 875 to Rp 11,675 and state
\nowned bank BNI.<\/p>\n
Other companies to gain included Jaya Pari Steel which rose by
\n93.10 percent to Rp 2,800, Panca Wirama Sakti by 43.18 percent to
\nRp 1,575 and Lippo Pacific Finance by 34.38 percent to Rp 2,150.<\/p>\n
PT Elang Realty's shares were among the most popular stocks
\nlast week. The share price booked a significant gain following
\nnews reports that Johannes Kotjo, known as a \"takeover expert\",
\nwould acquire the bank.<\/p>\n
The company's shares rose by Rp 150 to close at Rp 975 last
\nweek against Rp 850 the previous week.<\/p>\n
However, the latest report said that an affiliate of the
\nBakrie Group had signed an agreement to acquire the bank.<\/p>\n
Barito Pacific share price booked a gain of Rp 225 to close at
\nRp 2,175. The price rise was mainly due to market speculation of
\nthe firm's plan to raise a syndicated loan later this month, an
\nanalyst said. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/share-prices-on-jsx-likely-to-lose-ground-1447893297",
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