JSX under pressure amid price increases
JSX under pressure amid price increases
JAKARTA (JP): The stock market showed its displeasure to a number of government-imposed increases in sugar, low-cost houses and cement reference prices.
By the end of last week, the Jakarta Stock Exchange (JSX) Composite Index plunged by 9.54 points (2.22 percent) to close at 419.45.
Lower income tax, higher minimum wages and anticipation of higher property prices and interest rates are expected to undermine the government's effort to keep the inflation rate low this year.
More than a few eyebrows were raised when automotive dealer Tunas Ridean made its surprise announcement to proceed with its initial public offering, despite the current weak market sentiments.
Institutional investors applauded the central bank's announcement to introduce the Jakarta Inter-bank Offered Rate as a benchmark for local interest rates and an automated Parallel Information Bond System, which should give the bond secondary market a much-needed boost.
Domestic investors were moderately active, showing light buying interests in Indah Kiat and Barito, toward the end of last week. Other counters which were traded by domestic investors included Lippoland, Duta Anggada, JIHD and SMART.
Most foreign investors remained on the sidelines. But buying activities by them were seen on cement counters Semen Cibinong and Semen Gresik toward the end of the week. Other counters which saw active trading by foreigners included Indocement, HM Sampoerna, Astra International, Mayora Indah, BDNI, Gadjah Tunggal and Lippoland.
Average daily turnover on the regular board decreased to 6.88 million shares, worth Rp 25.20 billion (US$11.34 million), last week, from 11.24 million shares, worth Rp 38.78 billion, in the previous week.
Last week's total turnover decreased to 96.31 million shares, valued at Rp 320.73 billion, from 124.78 million shares, valued at Rp 455.26 billion, in the previous week.
Some of last week's best performers were Bank Niaga, Tigaraksa (up Rp 500 each), Bank Rama (up Rp 350), Bank Mashill and Bukaka Teknik (up Rp 200 each). The biggest losers were Mayora Indah (down Rp1,100), Berlian Laju Tanker (down Rp 750), Intraco Penta (down Rp 625), Bank Internasional Indonesia (down Rp 600) and Suba Indah (down Rp 550). Losers outnumbered gainers by 76 to 26, while 31 remained unchanged.
Technically, the bear appears to have the dominant grip of the market over the bull toward the Easter holiday. We see a slight downward trend in the market, but its near-term support is at 416.
After the holiday, we expect to see a slight upward correction and the market should hover at that level throughout this week.
-- Sigma Batara