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