Speculative JSX buying expected to continue<\/p>\n
JAKARTA (JP): Analysts are forecasting that domestic investors
\nwill continue their speculative buying on the second-liner and
\nthird-liner shares listed on the Jakarta Stock Exchange (JSX)
\nthis week.<\/p>\n
"Domestic investors' activities are likely to coincide with
\nthe expected return of foreign fund managers on big-cap stocks
\nbecause prices of those stocks have been stagnant during the last
\nfew weeks," Dandossi Matram from the Jakarta Brokers Club told
\nThe Jakarta Post over the weekend.<\/p>\n
A senior floor trader with a foreign brokerage, Nadjib Usman
\nbelieves the market will be marked by speculation this week.<\/p>\n
According to Nadjib, speculation, which is typical for short-
\nterm investment strategy, is usually boosted by rumors of
\ntakeovers or bonus share issues.<\/p>\n
"Some speculators may even try to gain profits on certain
\nstocks for dividends only," Nadjib told the Post.<\/p>\n
He said that the plans of many companies to hold annual
\nshareholder meetings soon is another reason for local investors'
\nactive participation because they are also looking for positive
\ndividend policies.<\/p>\n
"I think investors want to take every chance to gain profits,"
\nNadjib said.<\/p>\n
Dandossi noted that local investors have become more
\nresponsive to stock price movements since the automation of the
\nJSX's trading system.<\/p>\n
"The system allows them to carefully follow individual stocks.
\nThey sometimes decide to buy or sell immediately following any
\nrumors on those individual stocks," Dandossi said.<\/p>\n
The two analysts said that last week's 2.8 percent increase in
\nJSX share prices was mainly supported by local speculative buying
\nalthough the return of foreign funds on Gudang Garam was also
\ninfluential.<\/p>\n
Gudang Garam's share price rose by nearly Rp 4,000 (US$1,7) to
\nclose last week at Rp 34,300 on the company's plan to split its
\nstocks this week.<\/p>\n
The JSX composite index closed the week 17 points higher at
\n624.53, as compared to an increase of only one point two weeks
\nago.<\/p>\n
Transactions<\/p>\n
The JSX booked transactions of Rp 1.7 trillion last week, with
\n563 million shares changing hands.<\/p>\n
Foreign buy transactions were Rp 1.16 trillion, while the sell
\ntransactions were Rp 1.17 trillion.<\/p>\n
The prices of 104 stocks advanced and 64 declined, while the
\nother 68 were unchanged.<\/p>\n
Dandossi said that pulp and paper stocks were given upward
\nmomentum by an upward trend of pulp and paper prices.<\/p>\n
Data from the JSX showed that the price of Inti Indorayon
\nshares was up 18 percent to close at Rp 2,850 last week, with
\n20.1 million shares changing hands at a total value of Rp 51.1
\nbillion.<\/p>\n
Indah Kiat was second in the top ten stocks in terms of volume
\nwith 24.5 million shares traded at Rp 59.3 billion.<\/p>\n
Another paper producer, Suparma, was also among the top ten
\nstocks in terms of value with 16 million shares traded.<\/p>\n
Japfa (Java Pelletizing Factory Ltd.) Comfeed Indonesia, a
\nproducer of copra oil cake pellets and coconut oil, led the top
\nten stocks in terms of volume with 48 million shares traded. Its
\nshare price rose 12 percent to close at Rp 1,875.<\/p>\n
Dandossi said that Japfa has been actively traded in the last
\ntwo weeks, following the announcement that the company has signed
\nan agreement to supply its products to McDonalds.<\/p>\n
The inactive pure tobacco cigarette maker, BAT Indonesia, was
\nup 15 percent to Rp 11,500 at the week close, boosted by the
\nmanagement's decision to distribute dividends of Rp 1,520 per
\nshare.<\/p>\n
Dandossi, however, foresaw that the JSX will not see
\nsignificant participation from foreign investors because the U.S.
\nFederal Reserve may increase its interests rates.<\/p>\n
"A survey on Wall Street says that the first quarter of this
\nyear saw a significant decline in the funds allocated to equity
\nmarkets," he said.<\/p>\n
"Therefore, I am still doubtful of new inflows of foreign
\nfunds," he added.<\/p>\n
The top ten stocks in terms of transaction value last week
\nwere Lippo Bank (Rp 104 billion), HM Sampoerna (Rp 102 billion),
\nJapfa (Rp 96 billion), Bank Internasional Indonesia (Rp 79
\nbillion), Gudang Garam (Rp 61 billion), Telkom (Rp 60 billion),
\nIndah Kiat (Rp 59 billion), Inti Indorayon (Rp 54 billion), Duta
\nPertiwi (Rp 51 billion) and Anwar Sierad (Rp 50 billion). (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/speculative-jsx-buying-expected-to-continue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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