Confidence pushes stock prices upwards

JAKARTA (JP): The last batch of favorable interim results last week strengthened investors' confidence, sustaining the market's upward momentum.

The JSX (Jakarta Stock Exchange) Composite Index closed the week at 515.56, up 10.23 points from the previous week's close of 505.33.

Both local and foreign investors speculated on discounted counters which had promising results. The market's bullish sentiment during the week was also bolstered by stronger rumors of the government's loosening of the foreign ownership limit.

Average daily turnover on the regular board increased to 17.44 million shares worth Rp 60.35 billion (US$27.73 million) last week from 16.92 million shares worth Rp 60.10 billion in the previous week.

Total turnover for the week decreased to 139.62 million shares valued at Rp 647.30 billion from 143.76 million shares valued at Rp 597.38 billion in the previous week.

Foreign investors were seen buying across a range of stocks with notable interest in consumer-related counters.

Particular interest was seen in palm oil producer SMART towards the end of last week. This came despite the government's decision to levy tax on exports of crude palm oil.

However, many believe this will result in better prices for cooking oil, which should provide a boost to the company's earnings.

Stocks which were actively traded by foreign investors includes Multipolar, Mayora Indah, Indah Kiat, Indorayon, Lippo Bank, Bank Mashill, BII, Bank Bali, Sekar Bumi, HM Sampoerna, UIC, Astra International, Tjiwi Kimia, Ciputra and SMART.

Local investors, which had bet on the strengthening of foreign confidence, stayed in the market. They were mostly seen trading on counters such as Bank Danamon, Gajah Surya Finance, Matahari, Dharmala Intiland, Hadtex, Indah Kiat, Indocement and Japfa.

Duta Pertiwi's 1-for-8 bonus shares and 1-for-4 dividend stocks, as well as HM Sampoerna's 3-for-2 bonus shares, were listed last week.

Some of last week's best performers were Indorayon (up Rp 1,100), Dankos Labs. (up Rp 800), Schering Plough (up Rp 700), Indocement (up Rp 600) and Kalbe Farma (up Rp 550).

The biggest losers were Multi Bintang (down Rp 800), Trias Sentosa (down Rp 675), Gudang Garam (down Rp 400), Ficorinvest Bank (down Rp 300) and Andayani Megah (down Rp 275).

Gainers outnumbered losers by 76 to 50, while 26 remained unchanged.

-- Sigma Batara