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)