JSX prices lose ground on profit taking

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX) closed 0.9 percent lower yesterday as investors started taking profits.

A dealer at a foreign brokerage firm said the market had remained strong but colored with profit taking on big capitalized stocks.

The JSX index dropped 6.07 points yesterday to close at 678.91, down from 684.98 the previous day.

Yesterday's turnover was worth Rp 632.9 billion (US$268,2 million) with 301.04 million shares changing hands.

Most analysts contacted by The Jakarta Post said the market was slowing down after strong gains early this week.

Jasmine Tedja of HSBC Securities said the price drop was partly caused by the 94.28-point fall in the Dow Jones index.

She said the falling Dow Jones index stimulated selling on the local market, pushing down most share prices.

HM Sampoerna fell Rp 150 to close at Rp 14,250, cigarette maker Gudang Garam dropped Rp 350 to close at Rp 11,400, Kalbe Farma dropped Rp 200, Modern Photo dropped Rp 350, BNI dropped Rp 75 to close at Rp 1,625 and BII dropped Rp 50 to close at Rp 1,750.

PT Telkom shares closed unchanged at Rp 4,100 with 2.9 million shares changing hands. Indosat fell Rp 100 to close at Rp 7,000 and Astra shares fell one point locally to close at Rp 6,300 while rising Rp 100 on the foreign board to close at Rp 7,850.

Several second-line shares gained ground despite the drop in most share prices. Zebra Nusantara gained Rp 775 to close at Rp 6,900, Bank BDNI rose Rp 200 to close at Rp 2,850.

One analyst said shares of Bank BDNI, primarily owned by Gajah Tunggal group, had risen because of a recently announced rights issue and its better than expected financial results.

An analyst from HSBC Jasmine Tedja was surprised by the rise of Zebra Nusantara shares despite an absence of market rumors on the stock.

Telaga Mas shares gained Rp 325 to close at Rp 5,700, Prasidha Aneka Niaga gained Rp 200 to close at RP 3,300, Vander Horst gained Rp 125 to close at Rp 1,620, Lippo Karawaci gained Rp 175 to close at Rp 2,775, Bumi Modern Hyatt rose Rp 150 to Rp 1,700, Bank Danamon gained Rp 100 to close at Rp 2,550 and Sona Topas gained Rp 75 to close at Rp 1,125.

An analyst with a securities firm said foreign and local investors favored Bank Danamon stock because others were overpriced.

The analyst said the price of Lippo Karawaci shares rose because investors expected that the planned initial public offering for Gleneagle hospital in the next few months would further strenthen its financial performance.

Gleneagle, Lippo's joint venture with a Singapore firm, operates a new hospital in Karawaci, West Java. (09)