Window dressing on JSX to continue this week<\/p>\n
JAKARTA (JP): Year-end window-dressing by listed companies is
\nexpected to continue on the Jakarta Stock Exchange (JSX) this
\nweek, with a few foreign investors intensify their buying of
\nselected blue chips in anticipation of January rises, according
\nto analysts.<\/p>\n
The analysts said window-dressing could be expected from the
\nissuers of second-line stocks, with the diversified conglomerate
\nLippo Group being the most noticeable example.<\/p>\n
\"The (composite) index will be pushed up to between 680 and
\n690 this week partly due to the window-dressing,\" said Jasso
\nWinarto of Sigma Research.<\/p>\n
A number of corporations usually attempt to prop up the market
\nprice of their shares on the JSX at the end of the year in order
\nto improve the image and perceived value of their companies.<\/p>\n
This propping up is done by bidding on their own shares in the
\nmarket, thus increasing the market price through artificial
\ndemand.<\/p>\n
\"The window dressing will also incite local retail investors
\nto join the buying spree, giving more room for the JSX index to
\nfurther increase,\" Jasso said.<\/p>\n
Retail investors see second-line stocks as having the greatest
\npossibility to book capital gain next year, another analyst said.<\/p>\n
Jasso agreed with other analysts that shares from the Lippo
\nGroup were the most prominent of those involved in the window-
\ndressing.<\/p>\n
\"Lippo Securities, Lippo General Insurance, Bank Lippo,
\nMultipolar and retail chain Matahari have shown noticeable,
\nstrange gains lately,\" Jasso said.<\/p>\n
Multipolar, for example, has gained about three times its
\nvalue from a month ago, according to an analyst with a joint
\nventure securities firm.<\/p>\n
Jasso said the window-dressing would continue until the end of
\nthe year.<\/p>\n
Share prices at the end of the year are recorded in companies'
\nannual reports and frequently are used as a reference for
\ncompanies' share prices throughout the next year.<\/p>\n
The Composite Index will be pushed higher but it will not
\ncrack the 700 level, Jasso said.<\/p>\n
He also said foreign players had begun buying select blue
\nchips last week and would continue their buying this week and
\npossibly into mid-January.<\/p>\n
\"They are anticipating the January effect next year,\" he said.<\/p>\n
Jasso said like on other stock exchanges around the world,
\nthere is increased buying in January with large fund managers
\ncustomarily purchasing a large portion of shares.<\/p>\n
Analysts predicted the JSX would have a better-than-usual
\nJanuary effect next year, with the rupiah likely strengthening
\nfurther to the 6,000 level amid the lessening of economic risks
\nin Indonesia and improving macroeconomic indicators in the
\ncountry.<\/p>\n
Unlike the JSX, the rupiah is expected to remain caught in the
\nyear-end doldrums, hovering between 7,000 and 7,150 to the US
\ndollar in thin trading this week, dealers said.<\/p>\n
The rupiah strengthened slightly last week on increased
\nforeign demand, but it was not clear that this demand would be
\nsustained, most dealers said.<\/p>\n
The rupiah at one point touched its intramonth high of 6,975
\nlate last week as foreign fund managers bought the local currency
\nfor their recently increased equity investments in Indonesia,
\nthey said.<\/p>\n
They said the rupiah was quick to rise because trading volume
\nwas so thin.<\/p>\n
\"But some local players started to buy the dollars as the
\ngreenback fell below the psychological 7,000 level,\" one dealer
\nsaid.<\/p>\n
Most banks will have their last currency trading day of the
\nyear on Tuesday, another dealer said.<\/p>\n
The JSX Composite Index increased by 4.3 percent to 666.13
\npoints last week, from 638.82 the previous week.<\/p>\n
The average daily turnover last week increased to 882.4
\nmillion shares, compared to 670.6 million the previous week.<\/p>\n
The average daily transaction value increased to Rp 695.32
\nbillion last week from Rp 660.8 billion the week before.<\/p>\n
Last week's top gainers were PT Multipolar, rising 94.74
\npercent, PT Semen Cibinong (78.57 percent) and PT Bumi Modern
\n(71.43 percent).<\/p>\n
The week's big losers were PT Miwon Indonesia, down 38.46
\npercent, PT Prima Alloy Steel and PT Zebra Nusantara (both down
\nby 25 percent).<\/p>\n
The top brokerage firms by transaction value were PT Lippo
\nSecurities with Rp 539.5 billion, PT Harita Kencana Securities
\n(Rp 355.4 billion) and PT Bhakti Investama (Rp 232.1 billion).<\/p>\n
The rupiah increased very slightly, closing the week at 7,015
\nagainst the US dollar, compared to its 7,045 close the previous
\nweek. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/window-dressing-on-jsx-to-continue-this-week-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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