JSX may remain quiet on BNI's share offering

JSX may remain quiet on BNI's share offering

JAKARTA (JP): Analysts have predicted trading activities on
the Jakarta Stock Exchange (JSX) will continue to be quiet this
week as most investors concentrate on the initial public offering
of state-owned Bank Negara Indonesia (BNI) 1946.

Apart from a contraction on BNI shares, which go public today,
analysts were not expecting international events to influence
market sentiment.

Analysts were pessimistic about the United States (U.S.)
presidential election this week having any major impact on
investors behavior in emerging markets, including Indonesia's.

"There has been a very low level of activity in recent weeks
from U.S. based investors and I don't see the U.S. election
having any direct impact in Indonesia," the president of PT BZW
Niaga Securities, Steven Kenny, told The Jakarta Post over the
weekend.

Another analyst from a foreign brokerage said that whoever
wins the coming election, be it Bill Clinton or Bob Dole, would
not help revive U.S. investor interest in Indonesia.

The analysts agreed that most U.S. investors were driven by
U.S. macroeconomic policies and not by political issues.

A former PT Inter Pacific Securities president, L.G. Rompas,
predicted no major change to U.S. economic and political policies
on Indonesia after the election.

"Foreigners who invest in Indonesia are not only Americans but
also from Europe and other Asian countries. So if there is any
impact, it will be very minimal," Rompas told the Post.

The major reason for foreign fund managers to come to
Indonesia is to take advantage of its equity market, he said.

Rompas and Kenny predict BNI's initial public offering will be
successful as have previous offerings of other state-owned firms.

"Compared to the other listed state-owned companies (Telkom,
Indosat, Tambang Timah and Semen Gresik), BNI might be less
interesting in terms of industry. But it remains attractive due
to its large size and its status as a state bank," Rompas.

Although several banking stocks are currently less expensive
than BNI shares, investors would prefer to buy BNI, he said.

"Many foreign investors have ordered BNI shares. So, I think
the offering will be many times oversubscribed," Kenny said.

Dealers said last week that the price of BNI shares, Rp 850
(36 U.S. cents) each, has increased by around 5 percent in the
gray market.

Meanwhile, the chairman of the Jakarta Brokers Club's
communications division Dandossi Matram, criticized BNI's
management and underwriters of the offering, for the lack of
aggression and communication in the promotion of the initial
public offering.

"It's a very big issue. But I don't understand why the
underwriters have yet to inform the public about how or where to
get the shares," Dandossi told the Post.

Putera

Concentration on BNI's offering weakened the market last week.
The JSX stock prices decreased by 0.1 percent with the composite
index declining by 0.67 point to 570.65 at the weeks close.

Total transactions on the JSX reached 456 million shares
valued at Rp 993 billion last week.

Foreign buy transactions amounted to Rp 695 billion, as
compared to sell transactions of Rp 614 billion.

"There was no news which could help lift market sentiment
while speculation on Astra's shares dipped because rumors of a
"take-over" had been gradually clarified, a dealer with a foreign
brokerage said.

The only big news midweek was an official announcement by
Putera Sampoerna, the founder and president of cigarette maker PT
HM Sampoerna, that he controlled a 15 percent stake in Astra.

Putera's statement, according to the dealer, failed to
stimulate market sentiment on Astra because investors had
anticipated the statement.

Astra booked a total trading value of Rp 54 billion with 12
million shares changing hands. Its share price rose by Rp 150 to
Rp 4,100.

Newly listed Daya Guna Samudra of the Djajanti Group topped
the list of most active stock with a trading volume of 33 million
shares worth Rp 74 billion.

Other most actively-traded stocks during the week were Telkom
(with a trading value of Rp 59 billion), Indosat (Rp 49 billion),
HM Sampoerna (Rp 49 billion), Cahaya Kalbar (Rp 38 billion),
Anwar Sierad (Rp 26 billion), Bimantara Citra (Rp 21 billion),
Mayora Indah (Rp 20 billion) and Berlian Laju Tenker (Rp 20
billion). (alo)