JSX to remain active as investors return this week

JSX to remain active as investors return this week

JAKARTA (JP): Trading on the Jakarta Stock Exchange (JSX) is
expected to remain active this week as more investors will be
reentering the market after the year-end holiday, stock analysts
said over the weekend.

They also said that shares of Lippo Group companies would
continue to dominate the market as the group would most likely
continue to campaign for its planned Internet business.

Lukman Hakim from PT Isthetmar Finas Securities said the Lippo
Group's Internet business campaign -- particularly the one by
Lippo Life -- was the main effort to increase the concerned
company's share price prior to its planned rights issue.

"It is normal for companies in Indonesia to push their own
share price up artificially prior to a planned rights issue,"
Lukman said.

Lippo Life shares were the most actively traded shares last
week. Its shares contributed almost one-third of the total daily
trading volume on JSX for the last two days of last week.

JSX traded some 2.7 billion shares daily for the last two days
of last week, 30 percent of which were Lippo Life shares.

Many companies want to do business through the Internet, and
this is an effective weapon for the concerned companies to
increase their share prices, according to Lukman.

"All technology-related shares are going up. The prices are
just going up like crazy, they're becoming overvalued," he said.

Lippo Life shares, with a book value of Rp 60 as of September
1999, managed to close the week at Rp 700 last week, Lukman said.

Another analyst at a local securities firm said this week
would be another active week and Lippo Group shares as a whole
would again lead the market liquidity.

"An active market is good for the index. The JSX (composite)
index will certainly benefit from it."

Strengthen

He added that the composite index would rise toward the 750
level in the first phase of its journey toward the much talked-
about 1,000 level on the strong January market effects, in which
most investors chart their investment plans for the year.

Lukman Hakim agreed that the composite index would strengthen
this week, but reminded companies to stick to their stated
corporate plans.

It is expected that companies which boasted about their
Internet business plans but which would not show any early
evidence of realizing the plan subsequently would go bust as a
result.

"Shares prices will go up on hearing news of the nice-to-hear
plan, but then they may drop if the market hears no follow-ups of
the plan," he said, adding that this would affect the index.

Analysts said the market would continue to watch development
in the U.S. market, especially toward early February when the
U.S. Federal Reserve will announce the level of benchmark
interest rates.

U.S. Federal Reserve chairman Alan Greenspan hinted strongly
late last week that he would pose a more friendly and less
aggressive approach toward increasing interest rates.

The JSX composite index increased slightly to close the four-
day trading week at 690.89 points last week, from 688.52 the
previous week.

Its daily transaction value increased to Rp 1.97 trillion last
week, compared to Rp 1.24 trillion the previous week.

The average daily turnover rose to 2.25 billion shares last
week from 979 million shares the previous week.

Last week's top gainers were PT Clipan Finance Indonesia,
whose shares rose 78.95 percent, PT Putra Surya Perkasa (75
percent) and PT Asuransi Dayin Mitra (68.18 percent).

The week's big losers were PT Bayer Indonesia SB, whose shares
fell 31.97 percent, PT Astra Graphia (30.73 percent) and PT
Metrodata Electronics (26.19 percent).

The top brokerage firms by transaction value were PT Vickers
Ballas Tamara with Rp 838.8 billion in transactions, PT Danareksa
Sekuritas (Rp 677.3 billion) and PT Trimegah Securindo Lestari
(Rp 533.8 billion).

The rupiah depreciated about a half percent to close the week
at 7,210 against the U.S. dollar, compared to its 7,167 close the
previous week. (udi)