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)