Shares likely to gain ground on consolidation<\/p>\n
JAKARTA (JP): Analysts are predicting that share prices on the
\nJakarta Stock Exchange (JSX) will rise slightly this week on
\nprofit taking and consolidation.<\/p>\n
"Share prices have gone up too much without stopping this
\nyear, so I think investors need time for consolidation because
\nthe prices are no longer cheap," Rolan Has from Lippo Investment
\ntold The Jakarta Post.<\/p>\n
He said that what is going to happen is "rotation buying"
\nwhich is typical for a consolidation process.<\/p>\n
Has said foreign investors would prefer to buy property shares
\nnow by liquidating their portfolio in other sectors because
\nproperty companies are expected to gain higher profits due to the
\nrecent reduction of income tax rates on house sales.<\/p>\n
"It would be better for the investors to take a breather now
\nwhile waiting for the announcement of the first quarter results
\nof companies," he added.<\/p>\n
Taufik, a dealer from PT Pentasena, believes that the JSX may
\nsee profit-taking actions from local investors who have been very
\nactive on second-liner and third-liner stocks over the past few
\nweeks.<\/p>\n
"I would say that they will immediately sell their shares when
\nprices go up by only two or three points," Taufik told the Post.<\/p>\n
"In this kind of mood, I believe that the market will be
\neasily corrected but a strong sentiment for property stocks may
\nhelp lift the index by a few points at the week close," he added.<\/p>\n
Taufik said that the signal for profit taking emerged last
\nThursday, when the JSX composite index dropped five points from
\nits high of 630 to 625, which was also the lowest level during
\nthe week.<\/p>\n
"But a technical rebound on Friday pushed up the composite
\nindex to close the week at 628.24, 3.7 points higher than the
\nprevious week's level," Taufik said.<\/p>\n
Transaction<\/p>\n
Last week's total transactions on the JSX reached Rp 2.03
\ntrillion with 718 million shares changing hands.<\/p>\n
Buy transactions by foreigners, according to data from the
\nJSX, were Rp 1.37 trillion, as compared to the sell transactions
\nof Rp 1.30 trillion.<\/p>\n
A textile company, PT Apac Centertex Corporation which is now
\ncontrolled by President Soeharto's son Bambang Trihatmodjo and
\nbusinessman Johaness Kotjo, was recorded as the most active stock
\nboth in volume and value on the news that the company will take
\nover another textile firm.<\/p>\n
Apac, formerly named PT Mayatexdian, booked total transactions
\nof Rp 206 billion with 97 million shares traded.<\/p>\n
Apac's share prices advanced 37 percent to close the week at
\nRp 2,650, making the company the top gainer of the week.<\/p>\n
Two listed companies which have proposed to take advantage of
\nthe government's new national car policy -- Astra International
\nand Bimantara Citra -- were also actively traded last week,
\nboosted by continuing debates on the new automotive policy.<\/p>\n
The JSX also saw active property stock transactions as the
\ngovernment introduced new tax rates which are considered
\nbeneficial for real estate developers.<\/p>\n
Three property companies were among the most active stocks,
\nincluding Duta Pertiwi (with 41 million shares traded), Duta
\nAnggada Realty (28 million shares) and Lippo Land Development (11
\nmillion shares).<\/p>\n
The stocks of three affiliates of Ometraco Corporation,
\nincluding JAPFA, Multibreeder and Ometraco Realty, were among the
\ntop ten losers.<\/p>\n
JAPFA's share price declined 13 percent due to its flat
\nearnings report. The company booked Rp 32.3 billion in net
\nprofits last year, as compared to Rp 31.5 billion in 1994.<\/p>\n
Multibreeder's share price dropped 18 percent on the news that
\nits 1995 net earnings decreased by 40 percent to Rp 9.1 billion.<\/p>\n
Ometraco Realty's share prices closed the week 14 percent
\nlower at Rp 1,200.<\/p>\n
One of last week's other biggest losers was Lippo Life
\nInsurance, which closed the week Rp 5,450 (48 percent) lower at
\nRp 6,150 on profit taking. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shares-likely-to-gain-ground-on-consolidation-1447893297",
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