Foreign interest boosts Telkom share price

Foreign interest boosts Telkom share price

JAKARTA (JP): Telkom shares on the Jakarta Stock Exchange (JSX) closed Rp 150 (seven U.S. cents) higher at Rp 2,325 yesterday supported by strong foreign interests to buy, brokers said.

Telkom stayed at the top of big volume and value with approximately 47 million shares traded, compared to the total trading volume of about 85.15 million shares on the exchange. This contributed to the rise of the composite index by about 4.8 points, a senior trader said.

The JSX Composite Index ended 10.85 points higher at 469.75.

A senior trader from Sanyo Primarindo Securities said that the trigger point was the price rise in the New York Stock Exchange. On Wednesday, Telkom closed at $19.50 per American Depository Share or about Rp 2,300 per share. In the last five days, the price rose by $1.125 per American Depository Share.

One American Depository Share represents 20 ordinary shares.

"Most foreign investors have been waiting for the stock price to be stable and they consider it is now stable. So it's the right time to buy," an analyst from Niaga Securities, Amy Tantri, told The Jakarta Post.

"The most probable reason to buy is the cheap price of Telkom shares. Although the price was stagnant during the first week, foreign investors still considered it a cheap stock," said Lily Halim of Baring Securities.

Stock analysts contacted by the Post predicted that foreign sentiment to buy will remain strong on Telkom, although they showed up when the price was already on an upward trend.

"It's not too late for them. They started at the most favorable level for them. They have a better strategy, which is rather different from that of mere speculators," said Tantry.

"They will still buy the stock up to the level of Rp 2,400 or Rp 2,500," said an analyst from BDNI Securities. (08)