Dollar sentiment drives shares lower

Dollar sentiment drives shares lower

JAKARTA (JP): Uneasiness over the U.S. dollar continued to
weaken the regional sentiment, driving share prices lower across
the board on the Jakarta Stock Exchange (JSX) last week.

The JSX Composite Index closed last week at 422.13, down 4.54
points from the week's opening of 426.67.

The market traded cautiously in an extremely narrow range. Its
sideways direction has been due to the support provided by local
punters, speculating on low priced and liquid counters, many in
the property sector.

Trading volume continued to be low, indicating a weak support
and lack of steam for a firm reversal.

Over the short term, sentiment is likely to remain fragile
with the uncertainty in the global monetary condition. The
Federal Open Market Committee meeting scheduled for tomorrow will
decide on the possibility of another interest rate hike. While
another rate raise will damage the market, the alternative of not
raising interest rate is expected to further weaken confidence on
the U.S. dollar.

Domestic player activities were moderate and concentrated
mainly on second liner stocks. Counters which were actively
traded by domestic players included BDNI, Barito Pacific, Lippo
Land, Duta Anggada, Pakuwon Jati, PSP and Dharmala Intiland.

Foreign players were buying up blue chip stocks at the end of
the week. Counters which saw active trading by foreigners
included Astra Int'l, HM Sampoerna, Indosat, Indofood, BDNI,
Lippo Bank, BII, Lippo Land, Gadjah Tunggal, PSP, Duta Anggada,
Tjiwi Kimia and Jababeka.

Average daily turnover on the regular board decreased to
10.19 million shares worth Rp 30.56 billion (US$13.78 million)
last week from 11.43 million shares worth Rp 36.71 billion in the
previous week, while last week's total turnover decreased to
89.24 million shares valued at Rp 313.32 billion from 99.04
million shares valued at Rp 324.77 billion in the previous week.

Some of last week's best performers were Bank Bali (up Rp
950), Indorama (up Rp 525), Bakrie & Brothers (up Rp 500), Sekar
Laut (up Rp 450) and Lippo Bank (up Rp 375). The biggest losers
were Bank Niaga (down Rp 1,500), Bank Surya (down Rp 1,200),
Mayora (down Rp 600), Ciputra Development (down Rp 450) and Ades
Alfindo (down Rp 425). Losers outnumbered gainers by 88 to 26,
while 24 remained unchanged.

-- Sigma Batara