Stock prices expected to be stable this week<\/p>\n
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
\nare predicted to be stable this week on lack of fresh news while
\nspeculations on certain stocks, including Astra International and
\nthe Lippo Group's financial affiliates, are likely to continue,
\ndealers said.<\/p>\n
A dealer said that rumors of a possible takeover are expected
\nto further buoy transactions on Astra shares. However, he
\npredicted that Astra's share prices would not go up as strongly
\nas two weeks ago.<\/p>\n
\"Several large crossing transactions this week gave a clue
\nthat new investors should have bought Astra shares. So, I do not
\nexpect other large transactions next week,\" a dealer with a
\nforeign brokerage said.<\/p>\n
The dealer, who declined to be named, speculated that once the
\nnew investors are named, the market could immediately react
\neither positively or negatively.<\/p>\n
He noted that for a blue chip company like Astra, big names
\nare no longer the main catalyst for pushing up share prices.<\/p>\n
Several politically well-connected businessmen, including
\ntimber tycoon Mohammad (Bob) Hasan as well as President
\nSoeharto's eldest daughter Siti Hardiyanti Rukmana and second son
\nBambang Trihatmodjo, have been frequently cited as potential new
\ninvestors.<\/p>\n
On the other hand, timber tycoon Prajogo Pangestu and
\nbusinessman Henry Pribadi are believed to be the most likely
\nsellers of Astra shares.<\/p>\n
\"I think the new investors must be a big consortium because
\nthat is the only sensible reason behind active transactions on
\nAstra shares last week,\" he told The Jakarta Post over the
\nweekend.<\/p>\n
He argued that Astra's current prices (at Rp 3,775, or
\nUS$1.61) fairly reflect its fundamentals.<\/p>\n
\"Therefore, if it's true that the new investors have executed
\nthe transactions at higher prices (above Rp 4,000 per share),
\nthose investors must have a motivation to control Astra,\" he
\nsaid.<\/p>\n
\"Astra is a big company. It's also the only listed company
\nwhich has the most independent management. So it seems to me that
\nthere should not be any possible engineering,\" he added.<\/p>\n
He questioned, however, how the consortium could afford to
\nback up the transactions with a huge amount of fresh money.<\/p>\n
He said Astra's share prices might further go up on the
\ncondition that the new investors were still looking for more
\nshares, not because of the investors' popularity.<\/p>\n
Meanwhile, a director of a joint-venture brokerage, who
\npreferred anonymity, told the Post that investors will also pay
\nattention to the Lippo Group's stocks.<\/p>\n
\"Market reactions will better reflect whether the Lippo
\nGroup's restructuring plan, which has been approved by its
\nminority shareholder, is fair,\" he said.<\/p>\n
He said the Lippo Group needed more time to prove that its
\nmove was well-accepted by the market because most of market
\nplayers believed that the managements of Lippo Bank, Lippo Life
\nand Lippo Securities were not quite independent in proposing the
\nplans.<\/p>\n
\"Investors will also be more cautious on both Lippo Securities
\nand Lippo Life on the likelihood that Lippo Bank will gradually
\nreduce its stake in the two companies in efforts to eliminate
\ncross-holding ownerships,\" he added.<\/p>\n
A Lippo Group spokesman, Roy E. Tirtadji, has confirmed that
\nLippo Bank is willing to do so to comply with the existing
\nregulation, particularly the new law on limited liabilities
\ncompanies which, among other things, bars cross-holding
\nownerships.<\/p>\n
Commenting on the general market outlook, several dealers
\ncontacted by the Post said they did not expect any big news,
\npositive or negative, which could strongly drive share prices
\nupward this week.<\/p>\n
\"I would say that as long as foreign investors remain active,
\nthe daily volume will stay stable at around Rp 250 billion,\" said
\nDandossi Matram, a director of PT Bakrie Securities.<\/p>\n
Dandossi also predicted that foreign investors will continue
\nto be net buyers.<\/p>\n
Astra's take-over<\/p>\n
Share prices on the JSX increased by 0.8 percent last week,
\nwith the composite index closing 4.309 points higher at 573.30
\npoints, mostly due to active transactions on Astra.<\/p>\n
Total transactions reached 846 million shares, valued at Rp
\n2.2 trillion.<\/p>\n
The value of foreign buy transactions amounted to Rp 1.3
\ntrillion, against sell transactions of Rp 1.2 trillion.<\/p>\n
Data from the JSX showed that Astra booked total transactions
\nof 195 million shares worth Rp 841 billion during the week,
\ncompared to 57 million shares at Rp 189 billion in the previous
\nweek.<\/p>\n
During the last two weeks, Astra's share price rose 45 percent
\nfrom a low of Rp 2,600 to Rp 3,775 at last week's close.<\/p>\n
Among the most active stocks last week were two from the Lippo
\nGroup, Lippo Securities and Lippo Life.<\/p>\n
Lippo Securities recorded a trading volume of 32 million
\nshares worth Rp 46 billion, while Lippo Life saw 38 million
\nshares changing hands at Rp 78 billion.<\/p>\n
Other most actively traded stocks in terms of value were
\nTelkom (with Rp 88 billion), Davomas (Rp 80 billion), Matahari
\n(Rp 59 billion), HM Sampoerna (Rp 56 billion), Berlian Laju
\nTenker (Rp 39 billion), Kedawung Setia (Rp 38 billion) and
\nIgarjaya (Rp 36 billion). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-prices-expected-to-be-stable-this-week-1447893297",
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