JSX index at highest level in six years

JAKARTA (JP): Share prices at the Jakarta Stock Exchange (JSX) continued gaining ground yesterday, with most share prices rising in active trading.

The JSX Composite Index gained 0.8 percent to close at 686.12, its highest level in six years, from 680.88 the previous day.

The index's previous high was 681.944 in April 1990 when the country's largest automotive company Astra International made its capital market debut.

Yesterday's turnover reached 402.4 million shares worth Rp 756.2 billion (US$320 million).

Securities analysts said yesterday that buying sentiment was fueled by rising prices on the New York Stock Exchange and several Asian markets, besides the improved financial performance of major listed companies.

The big capitalized stocks like BNI, HM Sampoerna, Gudang Garam, Tambang Timah and PT Telkom were among the most favored stocks yesterday.

PT Tambang Timah gained Rp 25 to close at Rp 4,125 following news that the tin mining company had expressed interest in joining the Busang gold mine in East Kalimantan.

PT Telkom's share price gained ground on news that the company would set up a cable TV network with three other private firms including Asriland, Telekomindo Bakti and the private television station RCTI.

"The news about the planned joint venture stimulated sentiment to buy Telkom's shares," an analyst at a joint-venture brokerage firm said.

Telkom shares rose Rp 100 to close at Rp 4,250 yesterday.

Bank BNI's shares also strengthened to close at Rp 1,575 as investors were confident that the bank's profit would exceed its initial target.

Jasmine Tedja from HSBC securities said that yesterday's trading was also colored with a change in the buying mood from big capitalized stocks to second and third line stocks.

Second line stock Zebra Taksi rose from Rp 3,750 to Rp 4,650. Centris Multi Persada gained Rp 725 to close at Rp 2,800 compared to Rp 2,075 the previous day.

Budi Acid Jaya rose from Rp 2,900 to Rp 3,200, Hotel Prapatan closed at Rp 2,125 from its previous day's close of Rp 1,900.

Securities analysts predicted that share prices on the JSX would continue gaining ground in the next few days because of the stronger presence of foreign investors.

They said that Federal Reserve Chairman Alan Greenspan's statement on Tuesday that the U.S. economy posed no immediate inflationary threat would support the local market.

The Dow Jones Industrial Average of blue chip issues was up 30.79 points to 6,874.66 in early afternoon trading on the impact of the Greenspan's comments.

This incited buying sentiment in most of Asia's major markets including the JSX. (09)