Bank stock sales push down JSX prices
Bank stock sales push down JSX prices
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
were dragged down 1.3 percent Monday by the heavy selling of bank
stocks, stockbrokers said.
The exchange was closed yesterday for Idul Adha, the Islamic
Day of Sacrifice.
Stockbrokers said the market had ignored the expectation of
there being a positive outcome from negotiations between the
government and the International Monetary Fund, as could be seen
by how most investors dumped stocks of banks which were put under
the supervision of the Indonesian Bank Restructuring Agency
(IBRA).
"I think most investors sold their shares, especially bank
shares, in anticipation of more bad news which could affect the
market negatively," a broker with a joint venture securities firm
said.
The government moved Saturday to suspend the operations of
seven insolvent banks and take over the management of other seven
ailing banks.
One of the seven suspended banks is publicly listed Bank
Surya. Six of the seven ailing banks placed under the management
of the Indonesian Bank Restructuring Agency are listed banks.
They are Bank Danamon, Bank Dagang Nasional Indonesia (BDNI),
Bank Umum Nasional (BUN), Bank Tiara Asia, Bank PDFCI and Modern
Bank.
Hectic trading on stock belonging to the seven problem banks
prompted the JSX management to suspend their trading. Trading on
their stock, except Bank Surya's, resumed again in the afternoon.
All but BUN dropped significantly. Danamon dropped Rp 125 to
Rp 225, BDNI shed Rp 50 to Rp 175, PDFCI Rp 50 to Rp 200, Tiara
Rp 75 to Rp 200 and Modern Bank dropped Rp 100 to Rp 150. BUN
remained unchanged at Rp 400.
The JSX Composite Index closed 7.15 points lower to 526.14 on
a total turnover of 414.81 million shares worth Rp 403.74 billion
changing hands on the regular market.
Elsewhere in the region:
Asian stock markets closed generally mixed yesterday, with
South Korea's main share index surging 5.4 percent in reaction to
the Japanese yen's rise against the U.S. dollar.
In Seoul, traders said share prices were boosted by news
reports that the South Korean government will privatize some key
state-run companies.
The Korea Composite Stock Price Index rose 23.66 points to
459.58.
In Tokyo, share prices closed higher for the second straight
session.
The benchmark Nikkei Stock Average of 225 selected issues rose
272.73 points, or 1.74 percent, closing at 15,978.72. On Monday,
the Nikkei index had gained 188.21 points, or 1.21 percent.
Traders said Tuesday's rise was mainly a continuation of
Monday's technical rebound following the market's more than 6
percent plunge last week on jitters about the health of the
Japanese economy.
In Bangkok, Thai shares closed sharply lower on news that more
local banks are raising lending rates, adding to investors'
concerns about Thai companies struggling through a recession.
The Stock Exchange of Thailand index slumped 12.92 points, or
2.9 percent, to 430.04.
In Hong Kong, share prices closed slightly lower, dragged down
by concerns over the faltering Japanese economy. The Hang Seng
Index slipped 3.25 points, or 0.03 percent, closing at 11,049.43.
In Taipei, share prices closed higher, with the key index
rising to a five-week high. The market's Weighted Stock Price
Index rose 27.20 points, or 0.29 percent, to 9,266.68.
In Manila, share prices closed higher after eight straight
sessions of declines. The Philippine Stock Exchange Index of 30
selected issues rose 22.87 points, or 1.1 percent, to 2,183.35.
In Wellington, New Zealand share prices closed lower. The
NZSE-40 Capital Index fell 7.16 points, or 0.3 percent, to
2,296.26.
In Sydney, Australian share prices closed marginally lower.
The All Ordinaries Index slipped 0.8 point to 2,794.8.
The markets were closed yesterday in Malaysia and Singapore
for holidays.
In Kuala Lumpur, Malaysian shares closed lower on Monday on
fears of further corporate defaults following last week's
announcement that construction concern Wembley Industries
Holdings Bhd. had been put under receivership. The Composite
Index fell 2.71 points, or 0.4 percent, to 663.77.
In Singapore, share prices closed slightly lower on Monday as
investors remained wary over Japan's economic woes. The Straits
Times Industrials Index slipped 1.58 points to 1,549.93.
In New York, the Dow Jones industrial average jumped 49.82
points on Monday to 9,033.23, boosted by news of the planned
US$80 billion merger by Citicorp and Travelers Group Inc, which
would the biggest corporate marriage ever. (aly)