JSX keeps drifting down despite higher trading

JAKARTA (JP): Recent increases in deposit rates offered by several major domestic banks, coupled with the U.S. Federal Reserve's indication of another hike in U.S. dollar interest rates by the middle of August, hit the market last week and dragged down overall sentiment. Despite an overall higher trading volume as compared to the preceding week, the Jakarta Stock Exchange (JSX) Composite Index continued to drift down, losing 7.98 points to close the week at 451.09.

Higher trading volume emanated from the listing of new issues -- Mulialand and Bank Bira. Both counters failed to stimulate the market but were able to maintain their prices at initial public offering (IPO) levels.

Mulialand closed the week at its offering price of Rp 2,850, while Bank Bira managed to rise by one point from its offering price to close the week at Rp 2,425. Meanwhile, the additional listing of 20 million Indah Kiat shares towards the end of the week attracted large foreign buying on the counter, followed by profit-hungry locals hoping to grab a piece of the action.

Notable selling pressure was witnessed on Hadtex, with news of a factory fire, despite management assurance that production will not be affected.

Average daily turnover on the regular board decreased to 5.88 million shares worth Rp 21.68 billion (US$10.01 million) from 7.2 million shares worth Rp 30.46 billion in the previous week. Total turnover for the week increased to 81.76 million shares valued at Rp 347.81 billion from 64.81 million shares valued at Rp 319.88 billion ($147.68 million) in the previous week.

The crossing board was dominated by transactions on Astra International, JIHD, Mulialand and Indah Kiat. On the regular board foreign investors continued to sell down on counters like Barito Pacific, Great River, Indosepamas, Hadtex, Duta Anggada, Sumalindo, Panin Bank, Texmaco Jaya, Polysindo and Gandawangsa. Selective foreign buying, however, continued, with foreign investors accumulating HM Sampoerna, Ciputra, Astra International, Argha Karya, Lippo Bank, BII, Gajah Tunggal, Mulialand and Kabel Metal.

Among the foreigners' favorites were Gudang Garam, Indorayon, Mulia Industrindo, Smart, Gadjah Tunggal, Hadtex, United Tractors, BDNI, HM Sampoerna, Indofood, Indah Kiat, Kabel Metal, Tjiwi Kimia, Bank Bali, BII, Astra Int'l and Pakuwon Jati.

Local investors, which were strong in the previous week, were seen to be more dominant on the selling position at the end of the week. Counters that were heavily traded were Inco, Indah Kiat, Pan Brothers, BDNI, Indofood, Dharmala Intiland, Mayatexdian, Japfa, Barito, Surabaya Agung, Mas Murni, Argha Karya and JIHD.

The three bonus shares which were listed last week were Sarasa Nugraha (seven-for-10), Summarecon (three-for-50) and Tira Austenite (two-for-five).

Among last week's best performers were PDFCI (up Rp 700), BUN (up Rp 550), Anwar Sierad (up Rp 475), Cipendawa (up Rp 450) and Asuransi Bintang (up Rp 300). The biggest losers were Indosepamas (down Rp 1,800), Semen Gresik (down Rp 800), Putra Sejahtera P. (down Rp 750), Sumalindo Lestari (down Rp 700) and Petrosea (down Rp 600). Losers outnumbered gainers by 69 to 32, while 21 remained unchanged.

-- Sigma Batara