JSX regains confidence, stocks rebound
JAKARTA (JP): Most counters on the Jakarta Stock Exchange (JSX) made a "technical rebound" yesterday on easing concern about Indonesia's political situation, following the delay of a court hearing, dealers said.
The hearing, scheduled for Thursday, was to discuss a lawsuit filed by the former chief of the Indonesian Democratic Party, Megawati Soekarnoputri.
A dealer said that market players had given close attention to the scheduled court hearing because they were afraid of any fresh riots which could happen following the hearing.
"Unlike yesterday, foreign investors have been more active than local investors today. So, it's quite normal to see most blue chips going up," a dealer with a London-based brokerage said.
JSX share prices rose 2.1 percent, with its composite index rising 12.03 points to 560.96 points.
Total trading volume reached 120.8 million shares valued at Rp 321 billion.
Data from the JSX shows that in the last two days, share prices went up by approximately 4.4 percent.
The composite index, which sharply declined by up to 27 points on Monday and Tuesday to a low of 533 points, due to investors' jitters about Indonesia's political instability following last weekend's riots, rebounded by 26 points in the last two days.
"We may say that the market has already regained investors' confidence but it's too early to say that the confidence is now completely recovered," a dealer with a London-based brokerage, who declined to be named, told The Jakarta Post.
"Foreign investors might have considered that they will miss a buying opportunity if they do not make it today," another dealer with a Japanese brokerage said.
"The market then became very active as local brokerages sold their position on blue chips, just as expected by the foreigners," the dealer said.
The dealer said that local brokerages, including Danareksa, Makindo and Lippo Securities, were net sellers yesterday.
On the contrary, most foreign-based securities houses were net buyers, including WI Carr, Credit Lyonnais, HG Asia, ING Baring and Peregrine Sewu.
"It's a common market mechanism that blue chips not only easily decline on any political issue but also easily increase when the issue disappears," one of the dealers said.
A senior trader from PT Pentasena Arthasentosa, Sumirat S, said that the price increase in the last two days was partly due to a stronger performance in the regional market.
"But it's worth noting that the increase gives no signal that the JSX is in a bullish mood. What was happening was a pure technical rebound," he said.
Bimantara Citra remained the most active stock with a trading volume of 8.4 million, while its share prices rose Rp 100 to Rp 2,350.
Sumirat said that Telkom, which rose Rp 150 yesterday, was the major contributor to the composite index increase.
Astra International increased Rp 125 to Rp 2,400 with 782,000 shares changing hands.
Cigarettemaker Gudang Garam advanced Rp 350 to Rp 9,000, while HM Sampoerna rose Rp 600 to Rp 24,100.
Indosat moved up Rp 200 to Rp 7,625 and Semen Gresik closed Rp 225 higher at Rp 5,700.
Other index movers on the rise were Tambang Timah, Indocement, and Asahimas Flat Glass. (alo)