JSX down on rumors of likely U.S. interest hike
JSX down on rumors of likely U.S. interest hike
JAKARTA (JP): Stock prices fell sharply across the board on
the Jakarta Stock Exchange (JSX) last week as the market took
another plunge ahead of the possible rise in U.S. interest rates
at the end of the month.
The JSX Composite Index closed the week 4.72 points (1.07
percent) lower to 437.15.
There were persistent and large selling orders from foreign
investors preferring to be on the sideline for the short term.
Falls in the U.S. and the regional bourses during the week
were also reflected in the weakening market sentiment.
The situation was worsened by reports that several large
Japanese companies were cashing out because of the earthquake,
while several Indonesian country funds were nearing maturity and
are expected to liquidate their portfolio.
New comer Telagamas, a shoe producer, closed at Rp 1,400,
higher than its initial public offering price of Rp 1,350. The
issue was small and trading on the counter was not very active.
The end of the week saw the market trading in a narrow range
due to support from bargain hunters. However, heavy selling
pressure still prevailed, thus a strong potential upside is
unlikely.
The possible increase in the market will depend on whether the
U.S. interest rate rise is below or above expectations -- 0.5
point and 0.75 point. If the increase is in line with
expectations we'll see some short term buying which should push
the index up slightly.
Domestic players provided some support through bargain
hunting. However they were short-lived by the strong selling
pressure.
Stocks which were actively traded by domestic players included
Indosat, Citra Marga, Duta Anggada, Mayatexdian, Japfa and Inco.
Foreign players continued to be the net sellers, although
selling orders eased towards the end of the week. Stocks which
were actively traded by foreigners included Indosat, Astra Int'l,
Barito, BDNI, Indah Kiat, Tjiwi Kimia, Barito, Gudang Garam,
Sampoerna, JIHD, Indofood and Indocement.
Average daily turnover on the regular board decreased to 12.3
million shares worth Rp 39.3 billion (US$17.8 million) last week
from 13.51 million shares worth Rp 47.16 billion in the previous
week.
Last week's total turnover decreased to 107.21 million shares
valued at Rp 397.63 billion from 110.14 million shares valued at
Rp 414.00 billion in the previous week.
Some of the best performers last week were Steady Safe (up
Rp 900), Texmaco Perkasa (up Rp 400), Indofood and Mayatexdian
(up Rp 225 each) and Indah Kiat (up Rp 200).
The biggest losers were CP Indonesia (down Rp 4,200), Sekar
Laut (down Rp 750), Bank Niaga (down Rp 700), SS Gas (down Rp
650) and Modernland (down Rp 600).
Losers outnumbered gainers by 90 to 22, while 68 remained
unchanged.
-- Sigma Batara