Local share prices continue falling
Local share prices continue falling
JAKARTA (JP): Jakarta stock market continued its sideway drift last week as investors pondered upon the implications of a chain of events unfolding swiftly across the local and foreign financial markets.
The JSX composite index closed virtually unchanged from the previous week at 419.5 points by the end of last Friday.
Despite efforts by the Central Bank of Japan to control Japan's escalating yen against the U.S. dollar, traders continued to push the dollar down to a low of 79.75 on Wednesday to the detriment of stock markets around Asia. And the state-owned PT Telekomunikasi Indonesia (PT Telkom) finally made a surprise announcement to float its shares on two international stock exchanges London and New York, besides Indonesia.
In the meantime, the cement saga dragged on with the government announcing a new decree that cement prices would be lowered by 10 percent, following a 40.7% increase the week before.
As companies continued to announce their 1994 results last week, two timber companies, Sumalindo Lestari and Barito Pacific, stood out among the rest, for their disappointing results attributed to poor plywood prices.
Rating agency Standard & Poor however managed to keep investor morale up with the announcement that it has raised Indonesia's long-term foreign currency rating to triple B (BBB) from triple B minus (BBB-) as a result of improved financial management and macroeconomic reform by the government.
In the money market, we expect the rupiah liquidity to tighten next week due to maturing short-term SBPUs, and overnight fund rate is expected to be pushed up slightly to about 17 percent.
The Jakarta Stock Exchange (JSX0 index opened the week at 419.45 and fell to 414.21 on Wednesday, the lowest since September 1993.
However, as we predicted, the market picked up 1.8 points (0.43 percent) to 419.52 at the end of the week. In the absence of positive factors to sustain the upward momentum, we expect the index to continue its sideway movement and fluctuate at around the 420 level.
Foreign investors were mostly sidelined as the stock market was still heavily influenced by the weak and unstable U.S. dollar. Some blue chip counters which saw active trading included Semen Cibinong, Semen Gresik, Barito Pacific, Gudang Garam, HM Sampoerna, Astra Int'l, Indosat, Indofood, BDNI, BII, and Gadjah Tunggal.
Local players were actively speculating in property stocks which included Duta Anggada, Dharmala Intiland, Lippoland, PSP, and JIHD. Other non-property counters were Indah Kiat, SMART, Barito Pacific, Indosat, Astra Int'l, CMNP and Gadjah Tunggal.
Average daily turnover on the regular board increased to 10.18 million shares worth Rp 31.98 billion (US$14.39 million ) compared to 6.88 million shares worth Rp 25.20 billion (US$11.34 million) in the previous week. Total turnover for the week also increased to 112.86 million shares valued at Rp 358.81 billion (US$161.41 million) from 96.31 million shares valued at Rp 320.73 billion (US$144.34 million) in the previous week.
Some of the best performers last week were Kawasan Industri Jababeka (up Rp 800), HM Sampoerna (up Rp 750), Gudang Garam (up Rp 650), Sorini Corp (up Rp 500), and Davomas Abadi (up Rp 400). The biggest losers were Unilever (down Rp 1,800), Bank Bali (down Rp 750), Tembaga Mulia (down Rp 500), Bank Niaga (down Rp 450) and Summarecon (down Rp 350). Losers outnumbered gainers by 69 to 44, while 31 remained unchanged.
-- By Sigma Batara