JSX closes 3.2 percent higher

JSX closes 3.2 percent higher

JAKARTA (JP): The Jakarta Stock Exchange (JSX) closed 3.2
percent higher yesterday, supported by a large inflow of U.S and
European funds.

The JSX composite index closed up 17.21 points at 550.99, a
new high for the last 22 months.

A senior trade manager of PT Sanyo Primarindo Securities, M.
Nadjib Usman, told The Jakarta Post that the drop in the Dow
Jones Index two days ago had pushed more foreign investors to the
Asian markets, including Jakarta.

Nadjib said that the market was further strengthened as local
buyers echoed the sentiments of the foreign investors.

"I think they foresee potential gains next week because they
have seen a strong sign that more foreign funds will come to the
market," Nadjib said.

A dealer of a local brokerage firm, Dandossi Matram, told the
Post that most transactions were executed by foreign-based
brokerages like HG Asia, Credit Lionnais capital Indonesia, UOBB
Securities and WI Carr.

The total trading volume reached 95.3 million shares, worth Rp
335.9 billion (US$145.8 million).

Winners outnumbered losers 62 to 20, while 43 stocks remained
unchanged.

Dandossi said that the cement and consumer goods sectors
performed particularly strongly.

Indocement gained Rp 750 to close at Rp 9,100, and Semen
Gresik Rp 550 to close at Rp 8,000.

Mayora was up Rp 75 at Rp 2,550, Modern Photo gained Rp 225 to
close at Rp 13,825.

Telkom, which closed Rp 125 higher at Rp 3,125, contributed
about 4 points to the index rise.

Other blue chip stocks on the rise were Indosat, Indofood and
Bank Internasional Indonesia.

A director of the JSX told the Post that the major reason for
the rise of blue chips' prices yesterday was the recovery of the
regional markets.

However, JSX's president Hasan Zein Mahmud regretted that
although the market showed a strong growth there would be no new
listings on the exchange at for at least the next two months.

"It's a pity that new issuers aren't taking advantage of the
positive sentiment on our market early this year. I think they
want to see the reports of the listed companies before deciding
on their plans to go public," Hasan said.

However, Dandossi said that such a sharp rise in the share
prices yesterday might be followed by a plunge next week due to
people looking for short-term profits. (08)