Positive sentiment seen on JSX stocks this week
Positive sentiment seen on JSX stocks this week
JAKARTA (JP): Several analysts predict a positive performance
for the Jakarta Stock Exchange (JSX) this week, but believe share
prices would move up in a narrow range on an expected profit-
taking and consolidation mood on selected big companies.
"Market sentiment is definitely positive following Wall
Street's gains. And I'm sure some more money is
coming into the market," Lippo Securities' Managing Director
Kelvin Lee told The Jakarta Post over the weekend.
Lee and other two analysts contacted by the Jakarta Post said
in the short term JSX stock prices still had room to go up but at
certain levels selective profit taking would occur.
They also predicted that several big companies including
Telkom and HM Sampoerna were likely to consolidate following
strong rallies last week.
Sampoerna share prices advanced Rp 2,350 (99.78 U.S. cents)
last week to close at Rp 24,000, while Telkom rose Rp 450 to Rp
3,925.
Stocks of the two largest banks, Bank Dagang Nasional
Indonesia (BDNI) and Lippo Bank, respectively gained Rp 300 and
Rp 150 last week before closing the week at Rp 2,000 and Rp
3,550.
Commenting on what was going to trigger market sentiment, the
analysts said that to some extent Wall Street would continue to
drive Asian markets including the JSX, while on the domestic side
there was nothing to worry about on the macro-economic and
political fronts.
"But I'm just not so sure whether fund inflow will continue
next week. I also doubt that a strong performance will last long
after the listing of the state-owned Bank Negara Indonesia (BNI)
1946 late this month," a senior manager of Japanese based PT
Daiwa Securities, Moto Murata, said.
Murata predicted BDNI stock would remain active this week
despite expected profit-taking in the banking sector.
Meanwhile, Lee and Nurkhamid Akhmad, chairman of the Jakarta
Brokers Club were optimistic that rallies on several bluechip
companies will continue this week.
The analysts agreed the market's composite index would stay
above the 600 level until the end of this month. But they said
it would be difficult to hit the historic high of around 630
points in the remaining one and a half months of this year.
Nurkhamid said that before BNI's listing on the exchange, the
market will get new funds as BNI refunds investors on Nov.21
because the initial public offering would certainly be
oversubscribed.
Based on the latest positive trend, Lee said, the market will
positively welcome several new issues later this year from Siread
Produce, Glend Eagle Health Care, Bank Umum Servitia, Siantar Top
and PIKO Bank.
Murata, however, hinted that the upward share price movement
would not last long after BNI's listing (on Nov. 26) because fund
managers would gradually reduce their activities in anticipation
of the Christmas holidays.
"Buy-back"
The JSX recorded a very strong 5.5 price increase last week
thanks to investor sidelining on the public offering of the
country's largest bank, BNI.
The JSX composite index rose 31.36 points over the week to
602.02. Total trading volume reached 592 million shares worth Rp
1.2 trillion.
Foreign investors became net buyers with total buy
transactions of Rp 865 billion against sell transactions of Rp
747 billion.
The three analysts said such a huge increase was bolstered by
the availability of large amounts of idle funds which were
previously secured to buy shares BNI's shares.
"BNI's offering is a little different from the offerings of
other state-owned firms like Telkom. It is too difficult to get
such a `hot' stock," Murata said.
"I would say that many investors are disappointed with BNI's
offering," Nurkhamid added.
"It is noteworthy that investors had previously liquidated or
even taken `cut-loss' action on several bluechips just to
anticipate BNI's offering. But many of them failed," he said.
What was happening last week is best described as "buy-back"
action or technical rebound for selected bluechips, said
Nurkhamid.
The market received strong support from regional markets'
positive sentiment in tune with the Wall Street's post-election
gains, and positive domestic economic data.
"I would also say that it is the first time that foreign
investors made a `heavy' return since the July 27-incident,"
Nurkhamid said.
The most active stocks last week were Telkom (with a total
trading value of Rp 88 billion), BDNI (Rp 62 billion), Sampoerna
(Rp 57 billion), Mas Murni (Rp 55 billion), Indosat (Rp 47
billion), Citra Marga (Rp 40 billion), Anwar Siread (Rp 39
billion), Daya Guna (Rp 36 billion), BII (Rp 35 billion) and
Astra International (Rp 33 billion). (alo)