JSX composite index reaches new high

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) continued to gain ground yesterday as prices rose for second-line and several blue chip stocks.

The JSX Composite Index, the local market's benchmark index, gained 7.42 points to close at a new high of 694.28, with over 135.1 million shares changing hands on the regular trading board.

Despite the rise in the price index, the total trading of shares was down from the 171.3 million shares traded the previous day. The total transaction value also fell to Rp 313.4 billion (US$132.7 million) from Rp 449.25 billion on the previous day.

Securities analysts said that the transaction of second-line shares and medium-sized stocks dominated trading activity.

Surya, a dealer from the HG Asia brokerage firm, said that the increase in the index was mainly due to strong buying by both local and foreign investors.

"Investors made significant purchases before the Idul Fitri and Chinese New Year holidays," he said.

The market will be closed today and will be open again on Feb. 12, 1997.

The rise in prices of medium-size stocks and a number of blue chips pushed the index to a new high, he said.

Among the second liners that dominated trading were Ramayana, rising Rp 250, Kalbe Farma by Rp 125, Jakarta International Hotel Development by Rp 100, Fiskar Agung by Rp 150, Dharmala Agrifood by Rp 125.

An analyst said that Ramayana's share price rose because of its financial results from last year.

Banks remained the favorite stocks for investors as most listed banks reported better-than-expected financial results. Bank BNI gained Rp 50, BII booked Rp 25 and BDNI Rp 200.

A dealer yesterday said that BNI's share price rose due to rumors that the bank would merge with state-owned Bank Tabungan Negara.

Blue chip stock Gudang Garam gained Rp 100 yesterday, HM Sampoerna rose Rp 425 to close at Rp 14,800, Telkom was up Rp 50 to close at Rp 4,250 and Indosat climbed Rp 75 to close at Rp 6,750.

An analyst said Gudang Garam's price rose because the founders offered another 200,000 founders shares to the public.

Astra International rose Rp 75 to close at Rp 6,250 on the local board and Rp 100 to close at Rp 8,000 on the foreign board.

Argopantes, which rose Rp 25 to Rp 2,450, was said to have a plan to become the main supplier of textiles and textile- related products for the Southeast Asian market in the next few months, said an analyst. (09)