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