Stock market predicted to be bearish this week<\/p>\n
JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX) is
\nlikely to remain bearish this week due to a combination of weak
\nregional markets and lower-than-expected third quarter results
\nfrom local companies.<\/p>\n
Securities analysts and brokers said bearish trading in
\nregional markets would certainly affect stock prices on the local
\nbourse.<\/p>\n
\"With many listed companies reporting lower than expected
\nthird-quarter results, the prospect for recovery will be slim,\"
\nan analyst from a local securities company said.<\/p>\n
Head of Sales at BZW Niaga Securities, Adnan Tan, said that
\nthe market had not recovered yet despite a technical recovery on
\nstrong support for the listing of state-owned company PT Aneka
\nTambang last week.<\/p>\n
\"Based on the long-term view, the bearish situation will
\ncontinue in the coming weeks,\" he said.<\/p>\n
Other analysts echoed this, saying that the trend of JSX stock
\nprices would continue to be downward in the coming weeks.<\/p>\n
They said the JSX Composite Index, which recovered slightly at
\nthe end of last week, would weaken again and could approach the
\n350-point level.<\/p>\n
\"After breaking the 400-point level last week, we expect to
\nsee the price indicator go down further to 350 points toward the
\nend of the year,\" an analyst said.<\/p>\n
The head of research at Trimegah Securities, David Chang,
\nshared the same view. He said market sentiment would continue to
\ngo down because there was no positive sentiment in the market.<\/p>\n
\"There is no new fresh incentives in the market and the stock
\nprices will remain bearish for the coming three weeks,\" he said.<\/p>\n
Despite such a gloomy outlook, some analysts voiced optimism.
\nsuggesting that it was time to buy for certain selected stocks.<\/p>\n
Lippo Securities' head of research Jos Parengkuan said
\ninvestors should start looking at the opportunities available in
\nthe stock market.<\/p>\n
\"Every crisis presents crises and opportunities. In our
\nindustry, the danger lies in the potential corporate bankruptcies
\nwhich could render their shares worthless.<\/p>\n
\"Every crisis also opens up opportunities to acquire
\nfundamentally good shares at cheap prices.\"<\/p>\n
He said investors should give up thinking that the market
\nwould reach its bottoming-out level.<\/p>\n
\"The market will never reach bottom-out level. We think that
\nthe economy has to hit the bottom and that the stock market may
\ncome down further in the meantime.<\/p>\n
\"But let's not forget that the market will recover earlier
\nthan the economy,\" he said.<\/p>\n
Jos said that he based his analysis on the cheap price of some
\nJSX stocks which had declined drastically over the past three
\nmonths as the impact of the currency crisis hit hard.<\/p>\n
\"Certain stock prices have declined so much in the last three
\nmonths that they are unlikely to fall much further from here on,\"
\nhe said.<\/p>\n
At the same time, Lippo Securities' president Charles De
\nQueljoe said that the securities firm was considering lowering
\nthe interest rate the firm charged on its margin facilities for
\ncertain retail investors.<\/p>\n
\"Both the economy and rupiah are still miles away from being
\nstable and share prices are still vulnerable to further
\ncorrections. So far we've been right although it comes at the
\nexpense of our transaction volume,\" he said.<\/p>\n
The JSX composite index closed 10.169 points higher to 401.708
\npoints on Thursday last week. There were only four trading days
\nlast week as the bourse was closed Friday in observance of the
\nAscension Day of Prophet Muhammad.<\/p>\n
The average total daily turnover was 326 million shares
\ncompared to the previous week's 350.4 million shares.<\/p>\n
The average total daily transaction value was Rp 387.81
\nbillion (US110.8 million) against the previous week's Rp 320.20
\nbillion.<\/p>\n
Most blue chip stocks closed higher last week with state-owned
\ntelecommunications firm PT Telkom gaining Rp 25 to close at Rp
\n2,675, satellite operator PT Indosat rose by Rp 275 to Rp 8,275,
\ncigarette maker PT Sampoerna closed up Rp 125 to 4,850, its
\ncompetitor Gudang Garam closed Rp 275 higher to Rp 7,750.<\/p>\n
But most banking stocks lost ground, with Bank International
\nIndonesia falling Rp 25 to Rp 475, Bank Negara Indonesia by Rp 25
\nto Rp 575 and Bank Dagang Nasional Indonesia (BDNI) was unchanged
\nat Rp 400. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-market-predicted-to-be-bearish-this-week-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}