Jakarta stock prices rise 2.4%

Jakarta stock prices rise 2.4%

JAKARTA (JP): Stocks prices on the Jakarta Stock Exchange
(JSX) rose 2.40 percent yesterday on foreign selective buying and
local "bargain hunting".

"We didn't see a lot of buy orders when the market was
reopened because investors were waiting to see what was going to
happen in court," a dealer with a foreign brokerage said.

"The market began to be active late in the morning session as
an announcement about the court hearing's delay spread to the
market," the dealer added.

Investor confidence seems to have also improved, partly due
to a delayed court case that had been filed by the ousted chief
of the Indonesian Democratic Party (PDI), Megawati Soekarnoputri,
dealers said.

Several dealers contacted by The Jakarta Post said that,
despite a more stable political situation, the market was driven
by local investors not by foreigners.

One dealer said that foreign-based brokerages including Credit
Lyonnais, Peregrine Sewu and ING Baring were net buyers. Other
brokerages like Merrill Lynch and Morgan Grenfell remained net
sellers.

Meanwhile, most local brokerages, including state-owned
Danareksa, were net buyers.

The JSX composite index soared 12.91 points to close at
548.93, with 113 million shares valued at Rp 272 billion changing
hands.

Gainers outnumbered losers 85 to 19, while 31 other stocks saw
no change.

A dealer with a Japanese brokerage pointed out that yesterday's
increase was due mainly to active buying on index movers,
particularly cigarette maker Gudang Garam, HM Sampoerna and
Bimantara.

Gudang Garam edged up Rp 200 at Rp 8,650 with 1.6 million
shares changing hands while its rival HM Sampoerna rebounded Rp
1,700 to close at Rp 23,500 with 526,000 shares traded.

"Local investors should have realized that today was the right
time to buy blue chips stocks," an analyst said.

It's quite normal to see local investors active because they
know more about the political situation here, Sigma Batara's
research director, Fajar Sutardi, told the Post.

Fajar said that investors should have taken the view: "Why
should we buy second-liners or third-liners if the blue chips are
very cheap."

He also noted that as far as fundamentals are concerned,
consumer goods and infrastructure stocks like Gudang Garam,
Sampoerna and Telkom are less sensitive to political volatility.

"No wonder those stocks rebounded easily," he added.

He said that the market sentiment was positive as even the
most politically sensitive stocks -- Bimantara and Citra Marga --
went up.

Conglomerate Bimantara Citra rose Rp 125 to Rp 2,250. It was
also recorded as the most active stock with 8.2 million shares
changing hands.

Another politically sensitive stock, Citra Marga, rose Rp 125
to Rp 3,300 with a trading volume of 915,000 shares.

Astra International increased Rp 75 to Rp 2,275 with a trading
volume of 879,000 shares.

Telkom gained Rp 50 to close at Rp 3,275 with 3.3 million
shares traded.

Other stocks on the rise were BII, Barito Pacific, Indosat,
Tambang Timah and Semen Gresik.

Meanwhile, the rupiah firmed against the U.S. dollar in heavy
trading here as money market players started dumping the American
greenback

The Indonesian currency gained six points in afternoon
trading, rising to Rp 2,346,50, forex dealers said.

"The money market players' confidence in the Indonesian
currency has improved significantly," one dealer said.

In Singapore, the rupiah rose two points to Rp 2,352 in early
trading.

The Indonesian rupiah plunged nearly 30 points to a two-year
low of Rp 2,360 against the U.S. dollar on Monday following the
weekend riots. (alo)