Stock mart consolidates as holidays approach<\/p>\n
JAKARTA (JP): Share prices on the Jakarta Stock Exchange are
\nlikely to consolidate as the Chinese New Year and the Moslem Idul
\nFitri holidays approach.<\/p>\n
Securities analysts said holiday fever and the slim
\nprobability of the U.S. Federal Reserve raising the interest rate
\nin Tuesday's meeting would be the main reasons for the expected
\ndecline in buying sentiment this week.<\/p>\n
Most security analysts told The Jakarta Post the market was
\nhit by selling pressure earlier last week but it showed signs of
\nstrength before closing the week.<\/p>\n
A. Soerya of HG Asia brokerage firm said the improving
\nsentiment at the end of the week had not been anticipated as most
\ninvestors had estimated the market would continue its downward
\nturn.<\/p>\n
"We expected the market would be slowing down but we were
\nwrong," he said.<\/p>\n
The JSX index rose 1.8 percent or 12.12 points to close at
\n691.12 against last week's 678.91. The index rose steadily from
\nearly last week to reach 691.33 Wednesday on the back of the
\nimprovement in investor confidence in the local market.<\/p>\n
The index weakened Thursday with the news that angered mobs in
\nKarawang, West Java had damaged churches, homes and businesses of
\nethnic Chinese. The share prices, however, gained ground before
\nclosing the week, with the index reaching a new record high of
\n691.12 Friday.<\/p>\n
Daily turnover averaged 272.6 million shares worth US$238.1
\nmillion in comparison to the previous week's 337.8 million
\nshares worth $270.9 million.<\/p>\n
The trading volume reached 263,8 million shares in against
\nlast week's 301 million.<\/p>\n
Transaction values totaled Rp 550 billion compared to last
\nweek's Rp 632 billion.<\/p>\n
Edwin Syhruzad of Amsteel Securities said there was still room
\nfor the JSX index to further increase in the coming weeks, given
\nthe average price earning (PE) ratio was still lower than those
\nin other markets in the region.<\/p>\n
"The price earning here is among the third lowest in the
\nregion," he said, adding this would provide more opportunity for
\nshare prices to further increase.<\/p>\n
Reports that foreign investment funds were raising their
\ninvestment portfolios in Indonesia would also become an important
\nincentive in trading activities in the coming weeks.<\/p>\n
Jasmine Tedja of HSBC said foreign fund managers were more
\nconfident about the Indonesian market even though there were some
\nfears the country's political climate would hot up before the May
\ngeneral election.<\/p>\n
"The fund managers had anticipated that earlier this year,"
\nshe said, adding that the rising JSX index would further attract
\nforeign fund managers.<\/p>\n
Most analysts and dealers attributed increased trading
\nactivities to reports about the listed companies' expansion
\nprograms.<\/p>\n
PT Tambang Timah gained by Rp 950 to close at Rp 5,050, Bunas
\nFinance Indonesia gained by Rp 350 to close at Rp 2,200, Branta
\nMulia gained Rp 500 to close at Rp 2,700.<\/p>\n
Edwin of Amsteel Securities said Tambang Timah was a favorite
\ndue to reports the tin mining company would join with the
\ncountry's timber tycoon Mohamad 'Bob' Hasan to enter the disputed
\nBusang gold mine, in East Kalimantan.<\/p>\n
While Lippo group stocks such Multipolar gained Rp 75 after
\nthe shareholders rubber stamped its plan to acquire a majority
\nstake in the publicly listed department store chain Matahari.<\/p>\n
The same held true for Bakrie & Brothers' shares following the
\nannouncement its management had received an offer from the
\npolitically-well connected Nusamba business group to buy its
\nshares in Indocopper, which owns 9.36 percent of Freeport
\nIndonesia.<\/p>\n
Bakrie & Brothers gained Rp 150 to close at Rp 1,175 from the
\nprevious week's Rp 1,025.<\/p>\n
The investors had high confidence in Bakrie's shares because
\nthey believed the divestment of Indocopper meant Bakrie &
\nBrothers would be more serious about developing its core
\nbusinesses such as telecommunications, infrastructure and
\nplantations, said Jasmine of HSBC.<\/p>\n
HM Sampoerna gained Rp 500, while its competitor Gudang Garam
\ndropped by Rp 150 and the country's largest automaker Astra
\nInternational dropped by Rp 75 to close at Rp 6,250.<\/p>\n
This week, with the Chinese New Year and Idul Fitri holidays
\napproaching, the market is expected to slow down or if not it
\nwill be stagnant.<\/p>\n
An analyst said the banking stock would remain the favorite
\nstock to pick this week due to a better projected performance of
\nthe country's banking industry.<\/p>\n
Also worth noticing is consumer products stock which is
\npredicted to perform well due to increasing consumption during
\nthe holidays.<\/p>\n
But on overall market performance, analysts said that most
\nforeign fund managers have turned their eyes in the direction of
\nIndonesia. With that, the JSX would gain ground this week.<\/p>\n
An analyst from a joint venture security firm said high
\ncontribution from local investors would also boost the market.<\/p>\n
"Local investor participation shows they are expecting to see
\nthe index record 700 this year," he said. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-mart-consolidates-as-holidays-approach-1447893297",
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