JSX fails to maintain upward momentum

JAKARTA (JP): Pounded by bouts of profit taking, the Jakarta Stock Exchange (JSX) failed to maintain its upward momentum to close at 508.26 last week, falling by 0.88 points (-0.17 percent) from the previous week.

Investors were generally taking profits from the gains made in the rally of the previous week. Trading was moderate, while investors focused largely on the heavyweight counters.

The index retreated to the level of 507 last Tuesday from a high of 510 points. Nevertheless, the index was steady, mainly due to support for large-cap stocks. Dharmala Sakti Sejahtera, the financial holding company of the Dharmala Group, bore the brunt of the market's assault following news that Bankers Trust was taking legal proceedings against the company in the British high court. There were reports that the litigation was the result of losses from derivatives transactions.

This week, we expect the market to receive a one-off boost to break the year-high 510 points as a result of the high-profile listing of Bimantara Citra.

Local players' concentration continued to remain on the speculative property sector, which included PSP, Dharmala Intiland, Lippoland, Pakuwon Jati, Summarecon, Dharmala Sakti Sejahtera, SMART, CMNP and Sinar Mas Multiartha.

Foreign investors remained focused on large, blue-chip stocks such as CMNP, BDNI, Inti Indorayon, Dharmala Sakti Sejahtera, Sinar Mas Multiartha, Gadjah Tunggal, Indocement, Bank Danamon, Bakrie Brothers, BII, Japfa, Astra International, Indofood and Lippoland.

The three bonus issues which were listed last week were Darya Varia (1-for-1), Intinusa Selaraksa (3-for-5) and Pudjiadi & Sons (1-for-20). Furthermore, Sucaco's 1-for-2 rights issue was also listed last week, offering 22.84 million shares at a price of Rp 3,000 each.

Average daily turnover on the regular board decreased to 18.65 million shares worth Rp 64.66 billion (US$28.73 million) last week from 19.94 million shares worth Rp 70.60 billion in the previous week. Last week's total turnover increased to 231.64 million shares valued at Rp 834.82 billion from 176.06 million shares valued at Rp 647.06 billion in the previous week.

Some of last week's best performers were Modern Photo (up Rp 900), Modernland Realty (up Rp 500), Bakrie Bros (up Rp 500), Mayora Indah (up Rp 450) and Jababeka (up Rp 425). The biggest losers were Bank NISP (down Rp 550), Multi Bintang (down Rp 500), Bank Bira (down Rp 450), Wicaksana and Langgeng Makmur (each down Rp 350). Losers outnumbered gainers by 61 to 60, while 40 counters remained unchanged.

-- Sigma Batara