Press bans affected JSX performance last week

By Sigma Batara

JAKARTA (JP): External factors such as another possible increase in the U.S. dollar interest rate together with local protests against the government's banning of three popular publications further weakened performance on the Jakarta Stock Exchange (JSX) last week.

Towards the end of the week, foreign investors were seen dominating the market with largely selling orders. Trading throughout the week was generally thin. The JSX index fell 7.68 points from the previous week to close at 468.87.

A newcomer to the market, Ugahari failed to excite the market, showing only thin trading in its debut. Outlook over the next few weeks is expected to remain largely unchanged with the market continuing its move sideways.

Other factors constraining the rise of the index include a line of IPO issues entering its offering period, absorbing funds from the secondary market. In addition, some foreign fund managers are still absent while several are rumored to be hit by redemption calls.

Average daily turnover on the regular board increased to 4.6 million shares worth Rp 20.82 billion (US$9.64 million) compared to 4.8 million shares worth Rp 19.79 billion ($9.18 million) the previous week.

Total turnover for the week decreased to 45.11 million shares valued at Rp 232.03 billion ($107.47 million) from 98.97 million shares valued at Rp 276.19 billion ($128.05 million) the previous week.

Thin foreign activity in the market reduced liquidity. Foreign selling orders were mainly seen on counters like Mayora, Semen Cibinong, Astra Int'l Indonesia, Matahari, HM Sampoerna, Indah Kiat, BDNI, JIH, Gajah Tunggal, Great River, Pan Brothers, Pakuwon Jati, Indorayon, Bank Mashill and Andayani Megah. Volatile trading was seen on counters such as Tjiwi Kimia, and Barito Pacific which were still surrounded with the shares swap news of CASH Berhad and Prajogo Pangestu, the major shareholder of the Barito Group.

Local investors were still inactive except for some speculative trades although there were some investors locking into bargain counters, anticipating market recovery by August. Counters targeted by the local players were Surabaya Agung, BDNI, Inco, Mayatex, Barito Pacific, Japfa, Iki Kabel, Indah Kiat, and Tjiwi Kimia.

Rights issue that went ex last week was Dharmala Sakti Sejahtera (1-for-1) with an exercise price of Rp 1,650 per share. Meanwhile, Branta Mulia also went ex with a 4-for-5 bonus issue

Among the week's best performers were Sari Husada and Tira Austenite (both up Rp 500), Bakrie Brothers and Mulia Industrindo (both up Rp 300), and Centex (up Rp 250). The biggest losers were Metrodata Electronics (down Rp 1,475), BBL Dharmala (down Rp 1,150), Bank Niaga (down Rp 900), Mayora Indah (down Rp 600), and Semen Cibinong (down Rp 575). Losers outnumbered gainers by 78 to 19, while 21 remain unchanged.