Hubert Neiss visit 'may influence JSX'
Hubert Neiss visit 'may influence JSX'
JAKARTA (JP): The planned meeting of the International
Monetary Fund (IMF) director for Asia Pacific Hubert Neiss with
the new Indonesian economic team early this week may influence
the share trading on the Jakarta Stock Exchange (JSX), according
to security analysts.
They said market participants would closely watch how the
meeting develops.
But they admitted that it would not significantly influence
the JSX index.
"Investors have welcomed Neiss' visit and hope to see positive
results of the meting for the market," an analyst said.
Neiss is expected to arrive here between Monday and Tuesday,
and many speculate that he will resume talks on the review of
Indonesia's economic program.
The review is a requirement for the IMF to disburse loans to
Indonesia, which were suspended in September over the East Timor
issue and the mishandling of the high profile Bank Bali scandal
by the former administration.
Imamat Dalimunthe, executive director of Vickers Ballas
Tamara, agreed there would be positive market sentiments stemming
from Neiss' visit, but reminded investors not to have much
expectations regarding loan disbursement.
"It was too soon to perceive Neiss' visit as an indication for
the resumption of loan disbursements," he said.
He said that he believed the main purpose of Neiss' visit to
Indonesia was to meet and congratulate the country's new
President Abdurrahman Wahid and his Cabinet.
He said the IMF imposed a condition that Indonesia found
difficult to meet, that is, publicly disclosing the full audit
report of the Bank Bali scandal.
"There are no strong signs that the full audit report will be
disclosed to the public any time soon. What we know now is that
it will not be disclosed until mid-December. So the disbursement
could still be a long time after Neiss' visit," he said.
Rudy Triyunanto, an analyst at state owned PT Bumi Daya
Sekuritas, said early indications of the capabilities of the
newly sworn-in Cabinet in carrying out their tasks would also be
an influencing factor in this week's trading.
He said that Indonesia had reached a turning point from which
it had to press ahead with good policy implementation.
He said foreign investors now had positive perceptions of
Indonesia's political, social and economic developments after the
country's successful democratic presidential election.
"We want to see the implementation of the already improved
political and economic policies by the new government," he said.
Rudy said that the index would not be far away from the 600
point level.
"It may just be a little up and down from the 600 level this
week," he said.
The JSX Composite Index decreased 1.7 percent to 593.86 points
last week from 604.18 points in the previous week.
The average daily turnover last week decreased to 710 million
shares, compared to 2.1 billion shares the previous week.
The average daily transaction value decreased to Rp 689.2
billion from Rp 1.8 trillion, during the presidential election
week.
Last week's top gainers were PT Mulialand, up 40 percent, PT
Fast Food Indonesia, which went up 34.88 percent, and PT Tancho
Indonesia, which was up 22.22 percent by the end of the week.
The losers of the week were PT Centris Multi Persada with a
29.17 percent drop, PT Squibb Indonesia, which took a 27.69
percent tumble, and PT Suba Indah, which fell by 22.73 percent.
The top brokerage firms by transaction value were PT Vickers
Ballas Tamara with Rp 442.4 billion, PT Danareksa Sekuritas with
Rp 324.9 billion and PT ING Barring Securities, which did Rp
269.9 billion in business.
The rupiah closed flat at 6,903 to the U.S. dollar last week,
as compared to its 6,900 close the previous week. (udi)