JSX prices weak on cautious sentiments

JSX prices weak on cautious sentiments

JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
remained weak as nervous investors cashed in their holdings last
week. The market was seen trading within a narrow range,
reflecting investors' mixed and cautious sentiments.

Last Monday's trading saw the index pick up slightly. However,
the momentum was cut short by unfounded rumors regarding the well
being of President Soeharto.

There was heavy selling pressure on several blue chip counters
which dragged down the index further. The JSX Composite Index
finally closed at 416.45, down 3.07 points (0.73 percent) from
the week's opening of 419.52.

Financial results published last week were generally within
expectations except for several property companies whose results
were below market consensus.

There were rumors on derivative losses suffered by a major
listed bank. Although it was unfounded, the counter's share price
fell substantially, which also affected the share price of its
peers.

Other negative factors which influenced the market included
the high inflation over the last three months and continued
uncertainty in the foreign exchange market.

Under current market conditions, good fundamentals are the
only factor preventing the market from taking a deep plunge. In
the short term, the narrow trading range is expected to continue.

Domestic players provided the main support to the market.
Counters which were actively traded by them included BDNI, Smart,
Gadjah Tunggal, Indah Kiat, Tjiwi Kimia, Mayatexdian, Lippoland,
Duta Anggada, Pakuwon Jati, JIHD, PSP and Dharmala Intiland.

Foreign investors were seen nervous and sensitive to unfounded
rumors. Counters which saw foreigners' actively trading included
Gadjah Tunggal, BDNI, BII, Indah Kiat, Tjiwi Kimia, Astra Int'l,
Smart, Dharmala Intiland, Duta Anggada, Lippoland, Barito,
Indocement and Indofood.

The average daily turnover on the regular board increased to
12.51 million shares worth Rp 35.20 billion (US$15.81 million)
last week from 10.18 million shares worth Rp 31.98 billion in the
previous week. Last week's total turnover increased to 129.35
million shares valued at Rp 421.90 billion from 112.86 million
shares valued at Rp 358.81 billion in the previous week.

Some of last week's best performers week were KIA (up Rp 600),
Davomas Abadi (up Rp 550), Sona Topas (up Rp 500), Tembaga Mulia
(up Rp 400) and Indocement (up Rp 300). The biggest losers were
Tigaraksa (down Rp 1,200), Jababeka (down Rp 700), Lippo
Securities (down Rp 625), Smart Corp and Sari Husada (each down
Rp 300). Losers outnumbered gainers by 71 to 42, while 33
remained unchanged.

-- Sigma Batara