JSX rise expected to continue

JSX rise expected to continue

JAKARTA (JP): The Jakarta Stock Exchange (JSX) is predicted to
perform stronger this week as foreign fund managers become
positive about Indonesia's economy.

"There is no reason for the JSX to lose its uptrend because
the foreign fund managers' confidence in Indonesia is firming,"
the director of PT Mitraconvest, Sjahrir, told The Jakarta Post
over the weekend.

Sjahrir said that the JSX was ignited by the government's
report on Tuesday of 0.61 percent month-on-month deflation for
March.

"Moreover, fund managers might have been encouraged by a rumor
that Indonesia's economic growth reached 8 percent last year,
surpassing expectations," he said.

The JSX's stock price index increased by 6.79 points on
Wednesday. The index then moved upwards again by 10 points on
Thursday, pushing up the entire week by 19.38 points to close at
605.08.

"It's a high point but not a new record. The highest JSX
composite index was the 630 points recorded in 1993," Sjahrir
said.

The most important thing, according to Sjahrir, was that the
market was able to maintain sustainable growth.

"I do not see any chance of an immediate reversal, which often
happens after a sharp increase," he added.

Sjahrir also observed that in line with the foreign fund
managers' turnaround, blue chip stocks regained their role as the
market driving force.

He argued that two consumer goods stocks -- Gudang Garam and
HM Sampoerna -- will not lose values despite an increase in the
tobacco excise.

"The two stocks have proved that they can survive even in a
negative business climate for cigarette makers. They have to deal
with the BPPC (clove monopoly), but their sales volumes keep
rising despite the price increases. Economists call the trend
select consumer growth," he said.

Another interesting signal, according to Sjahrir, is the
stronger performance of all state-owned companies listed on the
JSX, including Semen Gresik, Indosat, Tambang Timah and Telkom.

"In my view, the positive macro and microeconomic situation,
as well as an increase in one-day trading activities by JSX
members, will keep the JSX strong," he concluded.

Last week the JSX recorded a four-day total trading volume of
424.6 million shares worth Rp 1.1 trillion. The market was closed
for a public holiday on Friday.

Buying by foreigners reached Rp 771 billion, as compared to
the Rp 735 billion sold by foreigners.

Telkom led the top 10 stocks in terms of volume and value with
32.2 million shares worth Rp 121.9 billion changing hands.

Telkom's share price increased 7 percent to close at Rp 3,925.
Indosat gained Rp 475 to close at Rp 8,500.

HM Sampoerna rose Rp 1,175 during the week to Rp 25,600, while
Gudang Garam advanced by Rp 1,850 to close the week at Rp 30,800.

The top 10 stocks in terms of value were Telkom, followed by
HM Sampoerna (with a total sales value of Rp 73 billion), Lippo
Securities (Rp 65.5 billion), Lippo Land Development (Rp 55
billion), Lippo Life Insurance (Rp 46 billion), Gudang Garam (46
billion), Duta Pertiwi (Rp 42 billion), Steady Safe (Rp 38
billion), Bank Internasional Indonesia (Rp 36 billion) and Citra
Marga Nusaphala Persada (Rp 35 billion).

Among the top 10 gainers was the less active Concord Benefit
Enterprises, which closed the week 43 percent higher at Rp 1,075.
It was boosted by the news that it won a toll-road tender to
develop 36 kilometers of a highway between Sadang and Subang in
West Java.

Another company boosted by positive news was taxi operator PT
Centris Multi Persadha. It rose 38 percent to Rp 1,350 following
the government's decision to raise taxi fares last week. (08)