JSX shares expected to remain strong
JSX shares expected to remain strong
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
are expected to remain strong this week as both foreign and local
investors are likely to continue to flock to the market,
securities analysts and brokers said.
The analysts said that the success of the general election on
May 29 had created a very positive atmosphere in the market.
"The election ran smoothly in almost all parts of the country.
This makes foreign investors more confident about Indonesia's
political situation," said Morgan Grenfell's research head, Adnan
Tan, over the weekend.
He said foreign fund managers now felt more comfortable after
the smooth process of election day on Thursday.
Brokers said many investors pulled out of the market in the
last two months in fear of possible riots during the campaign
period.
"It was something that investors had anticipated," a broker
said.
Trading was very active on the JSX on Thursday and Friday with
an increased presence of foreign investors. The trading volume
reached 378.31 million shares on the regular market on Thursday,
with total transactions worth Rp 784.32 billion (US$326.80
million). Friday saw 419.8 million shares changing hands worth Rp
861.8 billion.
"Trading was very strong thanks to the country's successful
election," a dealer from Bhakti Investama Securities said.
"Foreign investors started entering the market and they will
continue to do so in the coming weeks," said securities analyst,
Luciana Budiman, from ING Barings Securities.
Dealers attributed the increase of trading transactions to
bargain hunting of several blue chip stocks by foreign investors.
Tan said that most foreign fund managers had flocked to the
market because they had found other regional markets not as
strong as Jakarta's.
"Foreign investors have started taking their money out of
Thailand, Philippine and Malaysia markets," Tan said.
"They brought a lot of money into the Indonesian market," he
said.
Tan predicted that the JSX composite index, the local main
price index, would likely surpass 700 points in the weeks ahead.
Luciana agreed and said that the market would continue to be
strong until the end of this year.
The JSX composite index rose 37.51 points, or 5.7 percent, to
close at 696.03 last week against 658.52 in the previous week.
Total average daily volume rose to 283.45 million shares last
week in comparison to 187.37 million shares in the previous week.
Total daily average value also increased to Rp 552.09 billion
(US$ 230.04 million) last week compared to the previous week's Rp
343.89 billion (US$ 143.29 million).
Telkom was up Rp 400 to Rp 4,100 while Indosat rose Rp 450 to
close at Rp 7,250, Cigarette-maker HM Sampoerna jumped Rp 350 to
Rp 9,825 while competitor Gudang Garam was up Rp 650 to Rp
10,500. Bank Negara Indonesia edged up Rp 100 to Rp 1,600 while
Bank Internasional Indonesia climbed Rp 150 to Rp 2,000.
Tan said the presence of mutual funds in the capital market
also contributed to the new high transaction record in the local
market last week.
"There is more money seeping its way into the market," he
said. (09)
JAKARTA (JP): Share prices on the Jakarta Stock Exchange (JSX)
are expected to remain strong this week as both foreign and local
investors are likely to continue to flock to the market,
securities analysts and brokers said.
The analysts said that the success of the general election on
May 29 had created a very positive atmosphere in the market.
"The election ran smoothly in almost all parts of the country.
This makes foreign investors more confident about Indonesia's
political situation," said Morgan Grenfell's research head, Adnan
Tan, over the weekend.
He said foreign fund managers now felt more comfortable after
the smooth process of election day on Thursday.
Brokers said many investors pulled out of the market in the
last two months in fear of possible riots during the campaign
period.
"It was something that investors had anticipated," a broker
said.
Trading was very active on the JSX on Thursday and Friday with
an increased presence of foreign investors. The trading volume
reached 378.31 million shares on the regular market on Thursday,
with total transactions worth Rp 784.32 billion (US$326.80
million). Friday saw 419.8 million shares changing hands worth Rp
861.8 billion.
"Trading was very strong thanks to the country's successful
election," a dealer from Bhakti Investama Securities said.
"Foreign investors started entering the market and they will
continue to do so in the coming weeks," said securities analyst,
Luciana Budiman, from ING Barings Securities.
Dealers attributed the increase of trading transactions to
bargain hunting of several blue chip stocks by foreign investors.
Tan said that most foreign fund managers had flocked to the
market because they had found other regional markets not as
strong as Jakarta's.
"Foreign investors have started taking their money out of
Thailand, Philippine and Malaysia markets," Tan said.
"They brought a lot of money into the Indonesian market," he
said.
Tan predicted that the JSX composite index, the local main
price index, would likely surpass 700 points in the weeks ahead.
Luciana agreed and said that the market would continue to be
strong until the end of this year.
The JSX composite index rose 37.51 points, or 5.7 percent, to
close at 696.03 last week against 658.52 in the previous week.
Total average daily volume rose to 283.45 million shares last
week in comparison to 187.37 million shares in the previous week.
Total daily average value also increased to Rp 552.09 billion
(US$ 230.04 million) last week compared to the previous week's Rp
343.89 billion (US$ 143.29 million).
Telkom was up Rp 400 to Rp 4,100 while Indosat rose Rp 450 to
close at Rp 7,250, Cigarette-maker HM Sampoerna jumped Rp 350 to
Rp 9,825 while competitor Gudang Garam was up Rp 650 to Rp
10,500. Bank Negara Indonesia edged up Rp 100 to Rp 1,600 while
Bank Internasional Indonesia climbed Rp 150 to Rp 2,000.
Tan said the presence of mutual funds in the capital market
also contributed to the new high transaction record in the local
market last week.
"There is more money seeping its way into the market," he
said. (09)