Stock index rise unusual: JSX<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) is
\n\"investigating\" last week's market activities, as an \"unusual\"
\ntrading pattern led to a sharp 4.8 percent gain in the JSX
\nComposite index.<\/p>\n
JSX director Harry Wiguna said that last week's trading ran
\ncontrary to normal activities with most gains in the index being
\nmade during the last minutes of trading before closing time at 4
\np.m.<\/p>\n
\"We're looking into it (last week's trading) as we always do
\nwhen we find something unusual,\" he told The Jakarta Post on
\nMonday.<\/p>\n
He refused to use the term \"investigating\" for the process,
\nsaying they were still at the stage of examining the buying and
\nselling activities of securities companies to filter out
\nsuspicious trading patterns.<\/p>\n
\"It'll take about one or two weeks before we have some
\nconcrete results from the initial inquiry,\" he added.<\/p>\n
\"If our initial inquiry indicates something's wrong, we'll
\nproceed with a full investigation,\" he said without elaborating.<\/p>\n
The JSX index's upwards trend began two weeks ago, led by
\ngains in blue chip shares. The index closed last week's trading
\nat 437.59, up from 417.56 in the previous week, and 398.81 the
\nweek before.<\/p>\n
Data from Bloomberg shows that for the trading period between
\nMay 25 and June 25, the JSX index was the best performing index
\namong global stock markets, with a gain of 12.74 percent.<\/p>\n
This ran contrary to the rupiah's nondescript performance
\nagainst the U.S dollar.<\/p>\n
A breakdown of the daily stock trading pattern also reveals
\nthat most of last week's gains were made in the last 30 minutes
\nbefore closing time, with some even during the very last minute.<\/p>\n
Several securities firms, both state-owned and private ones,
\nsnatched up the shares of heavily weighted blue chips companies
\nthat were capable of dragging the JSX index up.<\/p>\n
Among the targets were state-owned telecommunications firm PT
\nTelkom Indonesia, whose rise and fall influences the JSX index
\nmovements. Historical data shows Telkom's share performance
\nclosely correlates with that of the JSX index.<\/p>\n
Other targets were the second largest company listed on the
\nexchange, cigarette firm PT Gudang Garam, and state owned long
\ndistance operator PT Indosat, another market heavyweight.<\/p>\n
According to analysts, such trading patters smacked of
\ninterference, as buying the blue chips at the last minute ensured
\nthe index remained strong when trading closes.<\/p>\n
Trying to boost the index too early only invites profit-taking
\nfrom other investors that can send the index plunging towards
\nclosing time.<\/p>\n
Most stock analysts had attributed the market recovery to
\ninvestors' confidence over the country's political outlook.<\/p>\n
But investment analyst Erwin S. Widjojo of PT Indovest
\nSecurities didn't rule out government interference as being
\nbehind the trend.<\/p>\n
Propping up Telkom and Indosat's shares, he said, would serve
\nthe government's plans to divest its stake in the two companies.<\/p>\n
Interference could have made it appear that the two companies'
\nshares were being actively traded and promising, he explained.
\n(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-index-rise-unusual-jsx-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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