JSX fails to sustain upward momentum
JSX fails to sustain upward momentum
JAKARTA (JP): The Jakarta Stock Exchange (JSX) failed to sustain its upward momentum last week, following heavy bouts of profit taking during the week.
The JSX Composite Index lost 13.8 points (2.7 percent) to close the week at 492.33.
Having hit overbought indicators, the market rally lost its momentum as foreign and local players cashed-out on gains from the last two weeks. Profit taking was seen in some big cap stocks which were considered to be overvalued.
The banking shares fell sharply in the middle of the week following the central bank's announcement on the increase of the reserve requirement rate from the current two percent to three percent.
This new rate, which will become effective on Feb. 1, 1996, is expected to have a negative effect on banks and may deteriorate banks' future earnings. Citra Marga (CMNP) was actively traded during the week as the company anticipates to complete the Jakarta Harbor Toll Road ahead of schedule by the middle next year.
Another positive piece of news for CMNP was that the company will enter into the construction of Metro Manila Skyway project in Manila, by early next year.
A transportation company, Steady Safe, was seen actively traded as a result of its joint venture with Hong Kong's FBM Marine Ltd. to operate the fast ferries in Indonesia.
Several property companies announced their third quarter results during the week, and most of them were in line with expectation amid the negative perception concerning the property sector.
Market sentiment is anticipated to remain soft this week on a lack of foreign participation. Both foreign and local investors will slow down trading activities as they heading the year-end holiday season. Market is expected to trade within a narrow range with the index moving within the 480 to 490 level.
Local investors were moderately active, showing speculative buying interests in banking and property sectors. Counters which saw active trading include Telkom, BDNI, Lippo Bank, Barito Pacific, Steady Safe, CMNP, Mayora Indah, Indah Kiat, Tjiwi Kimia, Gadjah Tunggal, Lippo Land, Duta Anggada, PSP, Enseval, BII, and Modern Bank.
Foreign investors were mainly on the profit taking position. Counters which were actively traded include Telkom, BDNI, CMNP, Gadjah Tunggal, Semen Gresik and Enseval.
Average daily turnover on the regular board decreased to 27.7 million shares worth Rp 70.4 billion (US$30.6 million) last week from 57.4 million shares worth Rp 143.4 billion in the previous week.
Total turnover for the week also decreased to 236.6 million shares valued at Rp 646.4 billion from 409.8 million shares valued at Rp 1,120.4 billion in the previous week.
Some of the best performers last week were Tembaga Mulia Semanan (up Rp 400), Jaya Real Property (up Rp 325), Great River (up Rp 300), Trias Sentosa (up Rp 250) and Bayer (up Rp 225). The biggest losers were Gudang Garam (down Rp 1,500), BII (down Rp 700), HM Sampoerna (down Rp 600), Modern Photo (down Rp 500) and Indocement (down Rp 425).
Losers outnumbered gainers by 93 to 34, while 39 counters remained unchanged.
-- Sigma Batara