Local stocks prices increase 0.4% in quiet trading
Local stocks prices increase 0.4% in quiet trading
JAKARTA (JP): Stock prices on the Jakarta Stock Exchange (JSX)
edged up 0.4 percent yesterday amid quiet trading with most
foreign investors sidelined.
"Today's increase doesn't mean that the market has regained
investors' confidence. Foreign investors are net sellers today,
meaning that they are still cautious of making a quick come-
back," a dealer with a London-based securities company told The
Jakarta Post.
The rupiah remained volatile yesterday despite a slight
increase in midday trading, with most money market players taking
a wait and see stance.
Foreign exchange dealers said the Indonesian currency slipped
against the American greenback to Rp 2,352 at yesterday's open
from Tuesday's close of Rp 2,348 following a rumor of a fresh
demonstration at the disputed headquarters of the Indonesian
Democratic Party.
The JSX composite index inched up 2.55 points to close at
536.03 points with decliners outnumbering gainers 52 to 36.
"Today's relatively stable situation on the JSX is just in
tune with a recovery in regional markets," the dealer added.
Another dealer with a Japanese brokerage firm said that the
major contribution to yesterday's price rise was a technical
rebound on Telkom, triggered by a higher closing on the New York
Stock Exchange on Tuesday.
The dealer said that Telkom's share prices rose from US$26.25
per American Depository Share (ADS) on Monday's close to $26,75
on Tuesday.
Telkom share prices on the JSX increased Rp 50 to close at Rp
3,225 yesterday with 3.6 million shares changing hands.
The JSX recorded total transactions of 102.5 million shares
valued at Rp 262.4 billion as compared to Tuesday's figures of
172 million shares worth Rp 310 billion.
Cigarette maker HM Sampoerna rose Rp 300 to Rp 21,800 while
Gudang Garam was unchanged at Rp 8,450.
Conglomerate Bimantara Citra increased Rp 75 to close at Rp
2,125, while toll-road developer Citra Marga stood at Rp 3,175.
Other big shares on the rise were Astra International, Barito
Pacific, Semen Gresik and Tambang Timah.
"We didn't get a strong sign that a recovery had begun.
Moreover, it is local investors who drive the market today. So, I
would say that the market is likely to fluctuate in a very narrow
range, whether up or down tomorrow," the dealer added.
"But traders seemed more cautious on the possible reaction of
Megawati's supporters if the court denies her lawsuit, which is
scheduled to be filed today...So, I would say that the market
will need more time to regain positive sentiment if other mass
riots occur following Megawati's court hearing," he said.
The rupiah edged up in midday trading yesterday in a tight
range between 2,348 and 2,350 because the demonstration rumor was
proven untrue, the dealers said.
"The rupiah-dollar trading remains nervous but it is
recovering a bit now," a dealer at the Standard Chartered Bank
said.
Rupiah-dollar trading is expected to remain slow in the next
few days as most investors are likely to remain cautious, he
said.
"We have to wait. As you know the market is still surrounded
by a lot of uncertainty," another foreign exchange dealer
said. (alo/hen)