JSX regains confidence, stocks rebound
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)