Buy-backs push share prices up in Jakarta

JAKARTA (JP): Supported by strong activities of small-capped stocks and buy-back of selected blue chips, the Jakarta Stock Exchange managed to sustain its momentum, closing last week at 496.29, up 3.05 points (0.61 percent) from the week's opening of 493.24.

Heavy selling pressure on blue chips at the beginning of the week dragged the index to the week's low of 487.80. Many investors were concerned about the size of the forthcoming initial public offerings of Tambang Timah and Telkom.

Banking stocks suffered most as investors digested the impact of the increase in the minimum capital adequacy ratio, which translates into the need for the rights issue for many of the listed banks over the next 12 months.

Towards the end of the week, however, the market managed to gain some lost ground as bargain hunters came in on selected blue chips with attractive discounts.

In the short term, the market is likely to be less active as investors cashed out for the listings ahead.

Local players were seen active on speculative issues. The counters which were actively traded by local players included Intraco Penta, Pan Brothers, BDNI, Smart Corp, Astra International, Bimantara, Gangda Wangsa, Dharmala Sakti Sejahtera and Evershine Textile.

Foreign investors were largely cautious. Counters which saw active foreign trading includes BDNI, Gadjah Tunggal, BII, Bank Lippo, Andayani Megah, Inti Indorayon, Semen Gresik and Indocement.

Average daily turnover on the regular board decreased to 28.8 million shares worth Rp 65.8 billion (US$28.9 million) from 35.8 million shares worth Rp 67.6 billion (US$29.7 million) in the previous week. Last week's total turnover increased to 189.5 million shares valued at Rp 600.1 billion from 246.7 million shares valued at Rp 590.4 billion (US$259.5 million) in the previous week.

The best performers last week were HM Sampoerna (up Rp 1,700), Zebra Nusantara (up Rp 850), Gudang Garam (up Rp 500), Kalbe Farma (up Rp 425) and Dankos Labs. (up Rp 400). The biggest losers were Nipress (down Rp 725), Bank Bali (down Rp 550), Sucaco (down Rp 525), Ades Alfindo (down Rp 450) and Ultra Jaya (down Rp 400). Gainers outnumbered losers by 65 to 71, while 26 counters remained unchanged.

-- Sigma Batara