Stock market set to remain bearish<\/p>\n
JAKARTA (JP): Stock prices in the local market are expected to
\nplummet further this week in line with the global market's
\nbearish trend.<\/p>\n
The rupiah, however, is likely to continue gaining more
\nleverage with the slight improvement in the country's monetary
\nindicators.<\/p>\n
Currency dealers estimated on Friday that the rupiah would
\nmost probably hover above the 10,000 level against the U.S.
\ndollar, but securities analysts said the local stock market would
\ncontinue to drop given the unfavorable world market sentiment.<\/p>\n
\"We don't see any good reason for investors to enter the
\nmarket in short term since there's no positive incentive at all
\nwhich could uplift sentiment,\" the head of research at BNI
\nSecurities, Adrian Lesmana, told The Jakarta Post on Saturday.<\/p>\n
He said foreign investors would continue to shun the country's
\nshattered financial market since placing funds here would no
\nlonger not generate any gains.<\/p>\n
\"Besides, investors would prefer to put their hedge funds in
\nother emerging markets which were not as badly hit as Indonesia,\"
\nhe said.<\/p>\n
Other analysts said foreign brokerage firms, which had placed
\nlarge selling orders over the past two weeks, would continue to
\ndo so on certain blue chip stocks to avoid further massive losses
\narising from the country's bleak economy.<\/p>\n
\"I am afraid that there is still some leftover foreign
\nselling. So, we will see another free-fall this week,\" a broker
\nwith a local brokerage firm said, pointing out the main price
\nindex would drop to the 230-point support level in the coming
\nweeks.<\/p>\n
They also voiced concern that unresolved political uncertainty
\nat home would pose another problem for foreign investors to
\nreenter the local market.<\/p>\n
BNI's Adrian said investors would remain cautious, fearing
\npossible clashes between the government and supporters of ousted
\nIndonesian Democratic Party (PDI) leader Megawati Soekarnoputri
\nduring a planned party congress in Bali starting this week.<\/p>\n
Megawati's PDI faction plans to convene the congress from Oct.
\n8 to Oct. 10.<\/p>\n
\"Hopefully there won't be a clash ... but if there is, the
\nmarket will certainly plunge again,\" an institutional sales
\nbroker with Trimegah Securindolesatari said.<\/p>\n
Adrian said unresolved political and social problems at home
\nwould not only weaken the country's bleak financial market but
\nwould also hinder the government's efforts to strengthen the
\ncountry's collapsed economy.<\/p>\n
\"We don't know what will happen ahead of the PDI congress but
\nthe investors are very cautious,\" he said.<\/p>\n
Stock analysts also said that the fate of the stock market
\nwould also depend on the movement of the rupiah, which closed
\nslightly stronger at 10,775 on Friday last week compared to
\n10,950 the previous week.<\/p>\n
The analysts said that dually listed stocks like state-owned
\ntelecommunications firm PT Telkom, international satellite
\noperator PT Indosat and mining firm PT Tambang Timah, which are
\ncrosslisted on overseas stock markets, would likely fall as
\nsentiment on the rupiah strengthened.<\/p>\n
\"If the rupiah declines, these stocks will rise. But if the
\nrupiah strengthens, the stocks will likely fall,\" Adrian said.<\/p>\n
An analyst with Trimegah Securindolestari, however, said it
\nwas still an opportune time for certain investors to accumulate
\nsome quality stocks at bargain prices.<\/p>\n
The analyst said that the stock of publicly listed fishing
\nfirm PT Daya Guna Samudera and shipping firm PT Berlian Laju
\nTanker were relatively unaffected by the rupiah's depreciation
\nand the country's crisis.<\/p>\n
The Jakarta Stock Exchange (JSX) Composite Price index fell
\n4.3 percent or 12 points to 263.22 last week from 275.22 the
\nprevious week.<\/p>\n
Total daily average turnover fell to 203 million shares
\nchanging hands from 251.67 million shares the previous week.<\/p>\n
Total daily average transaction value also fell to Rp 174.62
\nbillion last week compared to Rp 190.56 billion the previous
\nweek. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-market-set-to-remain-bearish-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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