Markets rally at the JSX falls short of expectations
Markets rally at the JSX falls short of expectations
By Sigma Batara
JAKARTA (JP): The market rally triggered by the listing of Indofood fell short of expectations, as the market slowed down with the JSX (Jakarta Stock Exchange) Composite Index losing 2.76 points to close at 459.07 last week.
Overall trading was dominated by large selling orders from foreign investors, followed by domestic players. Market sentiment deteriorated on Thursday and Friday as the U.S. Federal Reserve announced that the weak dollar is clearly a strong inflationary indication and would require another increase in the U.S. dollar short-term interest rate. Although there were mixed feelings among fund managers, overall global market performance was down.
Average daily turnover on the regular board increased to 7.2 million shares worth Rp 30.46 billion (US$14.06 million) from 6.3 million shares worth Rp 25.45 billion in the previous week. Total turnover for the week decreased to 64.81 million shares valued at Rp 319.88 billion from 81.50 million shares valued at Rp 378.50 billion.
The crossing board was dominated by foreign investors, with large crossings on Barito Pacific Timber, Mulia Industrindo, Indorayon and Indah Kiat. On the regular board, domestic players dominated the trading, largely on Inco, on rumors that the government may lift the 49 percent foreign ownership limit. Other counters which were actively traded in the regular board included Indah Kiat, Ganda Wangsa and BDNI.
Among the foreign favorites during the week were Gudang Garam, Indorayon, Mulia Industrindo, Smart, Gajah Tunggal, Hadtex, UT, BDNI, HM Sampoerna, Indofood, Smart, Indah Kiat, Kabel Metal, Tjiwi Kimia, Bank Bali, BII and Astra International.
Domestic players, however, were seen taking a more speculative position, with heavy trading on Inco, Indah Kiat, Pan Brothers, BDNI, Indofood, Dharmala Intiland, Mayatexdian, Japfa, Barito, Surabaya Agung, Mas Murni, Argha Karya and JIHD.
The three bonus shares which were listed last week were Alumindo Perkasa (1-for-10), Jembo Cable (8-for-10) and Lippo Pacific (1-for-5).
Among last week's best performers were Semen Gresik (up Rp 2,300), Lippo Life (up Rp 1,150), BAT (up Rp 500), Tembaga Mulia (up Rp 450) and Bank Niaga (up Rp 400). The biggest losers were Cipendawa (down Rp 700), Sucaco (down Rp 600), HM Sampoerna (down Rp 500), Panin Insurance (down Rp 425) and Ugahari (down Rp 400). Losers outnumbered gainers by 73 to 35, while 15 remained unchanged.