Stock prices on JSX expected to rise<\/p>\n
JAKARTA (JP): Several stock analysts predict that stock prices
\non the Jakarta Stock Exchange (JSX) may increase slightly this
\nweek as foreign investors may continue their bargain hunting on
\nselected blue chips.<\/p>\n
The analysts, however, said that investors would be very
\ncautious in making big transactions because of the concern about
\na possible rise in domestic interest rates.<\/p>\n
"The central bank's move to raise commercial banks' minimum
\nreserve requirement has intensified upward pressure on interest
\nrates. The situation is obviously unfavorable for stock market
\nperformance," a senior analyst of a local securities company told
\nThe Jakarta Post over the weekend.<\/p>\n
He argued that the raising of reserve requirement from 3
\npercent to 5 percent, to be effective next April, is a positive
\nmove in creating a strong banking system.<\/p>\n
"It's also positive for businesspeople because it may reflect
\nthat our economy is now very strong," he said.<\/p>\n
He said, however, that the move, which will further tighten
\nthe central bank's control over the banking system, is a positive
\nmaneuver for the economy in a long-term point of view.<\/p>\n
"But in the short term, the policy will hurt our banking
\nsystem. So, no wonder that most banking stocks reacted negatively
\nin midweek," he said.<\/p>\n
He said a recovery on several banking stocks over the weekend
\nwould not necessarily mean that investors had regained their
\nconfidence on those stocks but it was merely a technical rebound.<\/p>\n
Governor of Bank Indonesia Soedrajad Djiwandono suggested last
\nFriday that the increase of the reserve requirement should not
\nmake commercial banks raise interest rates.<\/p>\n
Commenting on general market sentiment, the analyst, who
\ndeclined to be named, said that foreign investors have become
\nmore positive on Indonesia but they still need more time to
\nevaluate their position before deciding whether or not to bring
\nin more fresh funds.<\/p>\n
"They might prefer to wait for new issues like PT Daya Guna
\nand particularly the state-owned Bank Negara Indonesia 46," he
\nsaid.<\/p>\n
A senior trader at the JSX, Nurkhamid Akhmad, said that buying
\ninterest from foreign fund managers is expected to continue this
\nweek.<\/p>\n
"What was happening in the last two days was a strong signal
\nfor foreign investors' return to the market. And as usual, this
\nmove will be followed by local investors," Nurkhamid told the
\nPost.<\/p>\n
Nurkhamid, who is also a commissioner of the Surabaya Stock
\nExchange, predicted that local investors will further chase the
\nshares of several companies which are currently preparing
\ncorporate action like the affiliates of the Gajah Tunggal Group
\nand Kalbe Group.<\/p>\n
Transactions<\/p>\n
The return of foreign investors late last week boosted a 1
\npercent increase on JSX stock prices during the week.<\/p>\n
The JSX Composite Index closed the week 5.2 points higher at
\n549.03.<\/p>\n
Trading volume reached 619 million shares worth Rp 1.3
\ntrillion (US$557 million) last week.<\/p>\n
Foreign buy transactions amounted to Rp 755 billion as
\ncompared to sell transactions of Rp 771 billion.<\/p>\n
Nurkhamid confirmed that most transactions done by local
\ninvestors last week were driven by rumors or news on corporate
\nactions. Those stocks buoyed by such rumors included Bhuwanatala,
\nMas Murni Indonesia, Intraco Pentha, Gajah Tunggal, BDNI and
\nSteady Safe.<\/p>\n
Bhuwanatala, the operator of the Bandung Indah Plaza shopping
\ncenter, booked total transactions of Rp 26 billion during the
\nweek on a "buy back" rumor.<\/p>\n
An internal restructuring in the Gajah Group boosted
\ntransactions of BDNI and Gajah Tunggal. The two companies booked
\ntotal transactions of Rp 39 billion and Rp 32 billion
\nrespectively.<\/p>\n
The "sleeping stock" of Intraco Penta recorded total
\ntransactions of Rp 35 billion with 22 million shares changing
\nhands on the rumor that the company might have planned to issue
\nrights shares.<\/p>\n
Telkom was recorded as the most active stock with a turnover
\nof 31 million shares worth Rp 103 billion.<\/p>\n
Telkom's share price was unchanged at Rp 3,300 at last week's
\nclose, while Indosat rose by Rp 375 during the week to Rp 7,675.<\/p>\n
Cigarette maker HM Sampoerna shares decreased by Rp 300 to Rp
\n22,200, while Gudang Garam rose by Rp 525 to Rp 9,200.<\/p>\n
The top 10 stocks in terms of value, other than Telkom, Medco,
\nBDNI and Intraco Penta, were Medco Energy Corporation (with a
\ntrading value of 79 billion), Astra International (Rp 65
\nbillion), HM Sampoerna (Rp 51 billion), Steady Safe (Rp 46
\nbillion), BII (Rp 41 billion), Lippo Life (Rp 38 billion) and
\nSemen Gresik (Rp 37 billion). (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stock-prices-on-jsx-expected-to-rise-1447893297",
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