Weekly review of Jakarta Stock Exchange<\/p>\n
By Sigma Batara<\/p>\n
JAKARTA (JP): The JSX index plunged 18.24 points from the
\nprevious week to 486.73 last week while most major players were
\nattending the Indonesian Capital Market Conference in Jakarta.
\nLocal profit takers turned into panic sellers when it became
\napparent that few buyers could be found in the market.<\/p>\n
With the absence of most major foreign investors in the stock
\nmarket, average daily volume of transactions was low, and the
\nmarket was illiquid and unpredictable.<\/p>\n
The general market sentiment was weak as there were market
\nrumors that the central bank has plans to increase state bank
\ndeposit rates, and investors are looking forward to a number of
\nattractive initial public offering (IPO) issues being offered at
\nconsiderable discounts to current market price.<\/p>\n
The inflation rate of 0.5 percent for May released by the
\ngovernment on Thursday is in line with general expectations. The
\naccumulative inflation rate of 4.5 percent for the first five
\nmonths of 1994 was lower than last year due to the oil price hike
\nin January 1993.<\/p>\n
Confidence<\/p>\n
However, investors are generally confident in the Indonesian
\nstock market as companies continued to report favorable first
\nquarter 1994 results.<\/p>\n
Average daily turnover on the regular board decreased to 8.60
\nmillion shares, worth Rp 39.24 billion (US$18.20 million)
\ncompared to 15.88 million shares, worth Rp 72.23 billion
\n(US$33.52 million) the previous week. Total turnover for the week
\nalso decreased to 78.02 million shares, valued at Rp 354.13
\nbillion (US$164.25 million) from 109.15 million shares, valued at
\nRp 514.34 billion (US$238.67 million) the previous week.<\/p>\n
Foreign investors were relatively inactive last week except
\nfor a few sizable cross transactions. A foreign broker said that
\nforeign investors are waiting for the market to consolidate
\nfurther before moving back into the Indonesian market.<\/p>\n
Some of the actively traded counters by foreign investors were
\nHM Sampoerna, Kabel Metal, UIC, JIHD, Barito Pacific, Gadjah
\nTunggal, Argha Karya, Sumalindo, BDNI, Tjiwi Kimia, Indorayon,
\nSmart and the newly listed Putra Sejahtera Pioneerindo.<\/p>\n
Most local investors are planning to liquidate their stocks to
\nparticipate in the four upcoming IPO issues in June. They were
\nvisibly active in Super Mitory, JP Steel, Bank Danamon, Dharmala
\nSakti Sejahtera, Gudang Garam, Dharmala Intiland, Mas Murni
\nIndonesia, JIHD, Surabaya Agung, INCO, Pan Brothers, BDNI and
\nGanda Wangsa.<\/p>\n
Putra Sejahtera Pioneerindo and Super Indah Makmur made their
\ndebuts on the JSX last week. Putra Sejahtera Pioneerindo,
\nfranchiser of California Fried Chicken fast-food chain, offered 9
\nmillion shares at Rp 5,100 per share, and Super Indah Makmur, a
\nplastic company, offered 5 million shares at Rp 2,075 apiece.
\nCitra Tubindo's 1-for-2 rights issue went last week at an
\nexercise price of Rp 3,500 per share.<\/p>\n
Among the week's best performers were Dankos Labs (up Rp 700),
\nUltra Jaya (up Rp 700), Bakrie Brothers (up Rp 525), Gudang Garam
\n(up Rp 450), and Multi Bintang (up Rp 300). The biggest losers
\nwere Bank International Indonesia (down Rp 1,250), Delta Jakarta
\n(down Rp 1,100), Voksel Electric (down Rp 1,050), Unilever (down
\nRp 1,000), and Astra International (down Rp 850). Predictably,
\nlosers outnumbered gainers by 85 to 23, while 41 remained
\nunchanged.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/weekly-review-of-jakarta-stock-exchange-1447893297",
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