JSX index up 8.23 points after strong 'relief' rally
JSX index up 8.23 points after strong 'relief' rally
JAKARTA (JP): Stock prices rebounded sharply across the board on the Jakarta Stock Exchange (JSX) last week as the market staged a "relief" rally following listless trading over the previous two weeks.
The JSX Composite Index ended last week up by 8.23 points (1.88 percent) at 445.38.
The market cleared two major obstacles -- the recent worries over devaluation of the Indonesian rupiah and the increase in U.S. and local interest rates.
The market appeared to have bottomed out of a firm resistance line of around 433. The rising momentum is strong, indicated by the high transaction volume, which also reflected improving sentiment.
However, whether the rally can be sustained depends on the ability of the market to break through its 450 resistance line.
Over the short-term, profit taking is likely to take place, which should result in a correction. In the medium term, the market is expected to trade in the range of 430-450.
Domestic players initiated the rally towards the end of the week, by speculating on a broad range of counters.
There was particular attention on the property sector which experienced the sharpest correction in recent months due to poor market outlook for properties companies.
The beginning of the week also saw speculation on PT Mayatexdian, a loss-making textile company rumored to be acquired by a prominent businessman, Johannes Kotjo, and the owner of the Bimantara Group, Bambang Trihatmodjo.
The other counters which were actively traded by domestic players included Indosat, Kalbe Farma, Mayora, BDNI, Lippo Bank, Sampoerna, Indocement, Japfa, Jababeka, Indah Kiat, Barito, Sumalindo, Dharmala Intiland and Gadjah Tunggal.
The absence of foreign players on the market was apparent, due to the Chinese new year holidays in Hong Kong and Singapore.
Foreign players entered the market towards the end of the week, triggered by the local rally. Stocks which were actively traded by foreigners included Indosat, Barito, BDNI, Indah Kiat, Tjiwi Kimia, Sumalindo, Gudang Garam, Sampoerna, JIHD, Indofood and Indocement.
The average daily turnover on the regular board increased to 16.16 million shares worth Rp 42.00 billion (US$20.12 million) last week from 12.30 million shares worth Rp 39.30 billion in the previous week.
Last week's total turnover decreased to 110.22 million shares valued at Rp 313.05 billion from 107.21 million shares valued at Rp 397.63 billion in the previous week.
Some of last week's best performers were Gudang Garam (up Rp 500), CP Indonesia, Mayora Indah (up Rp 450 each), Unitex and United Tractor (up Rp 425 each). The biggest losers were Dynaplast (down Rp 2,000), Jaya Real Property (down Rp 850), Jembo Cable (down Rp 700), Bakrie Brothers (down Rp 650) and Tempo Scan Pacific (down Rp 500).
Gainers outnumbered losers by 71 to 27, while 35 remained unchanged.
-- Sigma Batara