JSX share expected to keep on rising

JSX share expected to keep on rising

JAKARTA (JP): Bullish trading on the Jakarta Stock Exchange
(JSX) will continue this week, as the buying sentiment on blue
chips is likely to remain strong.

Securities analysts said several big capitalized stocks such
as Astra International, H.M. Sampoerna, Gudang Garam and BNI
would remain buying targets of both local and foreign investors.

Adriansyah Chaniago of DBS Securities predicted the index
would further strengthen this week on the impact of an inrease in
prices of the big cap shares.

Jasmine Tedja, an analyst from HSBC Securities Indonesia said
this week the market will see a strong performance, though she
did not expect a higher index.

"The index reached its record high last week, and to what
degree it would rise again?" she asked.

More than that, she said, the foreign investors will be back,
due to the strong fundamentals of the economy. "The foreign
investors are still confident about Indonesia's capital market,"
she said.

The JSX composite index rose 6.1 points or 0.9 percent to
close at 663.97 Friday from 658.70 last week. The trading volume
increased to 235.6 million shares from 150.6 million shares, with
the transaction value rising from Rp 334.78 billion to Rp 476.40
billion

The securities analysts and dealers mostly attributed the
increase in the share prices to an increase in prices of several
blue chips or big cap stocks.

"The market was strong, especially with big cap stocks," said
a dealer with a foreign brokerage firm.

Amid a strong performance of blue chip stocks, PT Telkom
declined to Rp 4,000, down eight points on Jan. 17 against its
price of Rp 4,200 in the previous week.

Jordan Zulkarnaen from Penthasena Securities said "stocks hit
by issues were strong," though he added such was applied to local
investors only.

The frequency of trading of BNI shares was high, with a total
volume of 58,372 million shares worth Rp 83.3 billion, although
the price dropped one point to Rp 1,400 Friday from the previous
Rp 1,425. "The price of BNI declined, but transaction value
increased," a foreign brokerage dealer said.

BNI's share's increase was partly due to news of the entry of
Morgan Stanley Capital Index to include Bank BNI in its index.

"BNI was triggered by Morgan Stanley," Adriansyah of DBS
Securities told the Post.

Several shares netted significant gains due to reports that
they would either book better financial performances or receive a
financing boost.

They included Barito Pacific Timber, gaining Rp 150 in the
week to close at Rp 1,700.

Jasmine Tedja, of HSBC Securities Indonesia said the increase
of Barito's shares was triggered by news on the syndicated loan
obtained by the firm, although "it is not really good news," she
said, because people had known that long before.

Penthasena's Zulkarnaen said stocks hit by rumors were strong
and it was understandable, because local investors lack access to
information. As a result, he said, they did not have any choice
but to trade the stocks.

Last week's gainers include HM Sampoerna, which rose to Rp
14,075 from Rp 13,500; Gudang Garam, to Rp 11,750 from Rp 11,700
and Astra International, to Rp 6,150 from Rp 5,500. An analyst
with a security firm said Astra's share increased due to the
launch of the company's new Kijang on the market.

"Astra's shares were triggered by the launch of the new
Kijang," he said.

Jordan said the market showed good signs, especially with the
listing of some new companies --- PT Alter Abadi and Bank Pikko
-- on the JSX and SSX, which has created enthusiasm among
investors.

Last week's trading was also colored by a change in the buying
direction from big shares to second-line stocks, such as Hero and
Multipolar.

Prices of the two stocks rose on rumors that two companies
would form a strategic alliance to better tap the country's huge
retail market.

The shares of the two companies performed well. Hero
Supermarket was fluctuating, but Multipolar's shares rose
significantly to Rp 1,900 last Friday, compared to its price of
Rp 1,700 during the previous week.

Anton Lukmanto, an executive of the Hero Group, would not
comment on his company's share performance. "It's a normal thing.
Rumors work that way," he said.

But an analyst with a joint venture securities firm noted that
since Multipolar had successfully created a strategic alliance
with Matahari Putra Prima, the same strategy might help PT Hero
Supermarket to perform well.

"The investors expected the finalization of Multipolar's
acquisition over Hero," the analyst said. (09)